{"id":10927,"date":"2019-04-06T11:17:14","date_gmt":"2019-04-06T05:47:14","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=10927"},"modified":"2019-04-26T14:40:49","modified_gmt":"2019-04-26T09:10:49","slug":"lt-finance-ncd-apr19","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/lt-finance-ncd-apr19\/","title":{"rendered":"9.05% L&#038;T Finance NCD \u2013 Apr&#8217;19 (Tranche II) \u2013 Should you Invest?"},"content":{"rendered":"\n<p><\/p>\n<p>L&amp;T Finance Limited is one of the leading private non-banking financial services companies in India and part of the larger conglomerate L&amp;T Group has come out with public issue of non-convertible debentures (NCD) offering up to 9.05% interest rate (Tranche II). The issue would open on April 8, 2019. Its primary financing business segments are rural, wholesale and housing.<\/p>\n<p> <\/p>\n<h2 class=\"wp-block-heading\">L&amp;T Finance NCD \u2013 Significant Points:<\/h2>\n<p> <\/p>\n<ul>\n<li><strong>Offer Period:<\/strong> April 8 to 18, 2019<\/li>\n<li><strong>Annual Interest Rates<\/strong> for Retail Investors: 8.90% to 9.05% depending on tenure<\/li>\n<li><strong>Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n<li><strong>Minimum Investment<\/strong>: 10 Bonds (Rs 10,000)<\/li>\n<li><strong>Max Investment Limit<\/strong>\u00a0for Retail Investor: Rs 10 Lakhs<\/li>\n<li><strong>Credit Rating:<\/strong>\u201c[ICRA] AAA (Stable)\u201d, \u201cCARE AAA\/Stable\u201d and IND AAA \/ Stable<\/li>\n<li><strong>NCD Size:<\/strong> Rs. 500 Crores with an option to Retain Over-subscription Up to Rs 1,000 crore<\/li>\n<li><strong>Allotment<\/strong>: First Come First Serve<\/li>\n<li><strong>Listing:<\/strong> Bonds would be listed on BSE &amp; NSE and will entail capital gains tax on exit through secondary market<\/li>\n<\/ul>\n<p> <\/p>\n<blockquote>\n<p><a href=\"https:\/\/www.apnaplan.com\/category\/fixed-income\/bonds\/ncds\/\">Click to Know about latest NCD issues<\/a><\/p>\n<\/blockquote>\n<h2>L&amp;T Finance\u00a0NCD &#8211; Investment Options:<\/h2>\n<p> <\/p>\n<p>There are 7 options of investment in L&amp;T Finance NCD.<\/p>\n<figure id=\"attachment_10932\" aria-describedby=\"caption-attachment-10932\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-10932\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LnT-Finance-NCD-\u2013-April-2019-\u2013-Investment-options-1024x459.png\" alt=\"L&amp;T Finance NCD \u2013 April 2019 \u2013 Investment options\" width=\"757\" height=\"339\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LnT-Finance-NCD-\u2013-April-2019-\u2013-Investment-options-1024x459.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LnT-Finance-NCD-\u2013-April-2019-\u2013-Investment-options-300x135.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LnT-Finance-NCD-\u2013-April-2019-\u2013-Investment-options-768x345.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LnT-Finance-NCD-\u2013-April-2019-\u2013-Investment-options.png 1500w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-10932\" class=\"wp-caption-text\"><strong>L&amp;T Finance NCD \u2013 April 2019 \u2013 Investment options<\/strong><\/figcaption><\/figure>\n<p><strong>  <\/p>\n<p>This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<p> <\/p>\n<ol>\n<li>Category I \u2013 Institutional Investors \u2013 10% of the issue is reserved<\/li>\n<li>Category II \u2013 Non-Institutional Investors, Corporates \u2013 10% of the issue is reserved<\/li>\n<li>Category III \u2013 High Networth Individuals (HNIs) \u2013 35% of the issue is reserved<\/li>\n<li>Category IV \u2013 Retail Individual Investors \u2013 45% of the issue is reserved<\/li>\n<\/ol>\n<p> <\/p>\n<p><em>High Networth Individuals are Investors\/HUFs applying for an amount aggregating to more than Rs 10 lakhs across all Series of\u00a0NCDs<\/em><\/p>\n<p> <\/p>\n<p>However NRIs cannot apply for this NCD.<\/p>\n<p> <\/p>\n<blockquote class=\"wp-block-quote\">\n<p><strong>Also Read:<\/strong>\u00a0<a href=\"http:\/\/www.apnaplan.com\/tax-free-incomes-investments\/\">25 Tax Free Incomes &amp; Investments in India<\/a><\/p>\n<\/blockquote>\n<p> <\/p>\n<h2 class=\"wp-block-heading\">Why you should invest?<\/h2>\n<p> <\/p>\n<ol>\n<li>AAA Credit rating means very less likely hood of credit default<\/li>\n<li>The interest rate seems to be coming down. Hence good idea to lock investment for long term.<\/li>\n<li>The NCD is secured, which means the above debt is backed by assets of the company<\/li>\n<li>Part of the reputed conglomerate L&amp;T Group<\/li>\n<li>The <a href=\"http:\/\/www.apnaplan.com\/highest-interest-rate-on-bank-fixed-deposits-fd\/\">interest rates are 2% higher than your regular Bank FDs<\/a><\/li>\n<li>No TDS if invested in Demat Form<\/li>\n<\/ol>\n<p> <\/p>\n<h2 class=\"wp-block-heading\">Why you should not invest?<\/h2>\n<p> <\/p>\n<ol>\n<li>There are NCDs available in secondary market which have higher yields with similar rating. The problem is low liquidity and hence is difficult to buy in large numbers.<\/li>\n<li>The present <a href=\"http:\/\/www.apnaplan.com\/category\/fixed-income\/bonds\/tax-free-bond\/\">Tax Free Bonds<\/a> are offering yields up to 6.5% in secondary market, which is better investment for People in highest tax bracket.<\/li>\n<\/ol>\n<p> <\/p>\n<h2 class=\"wp-block-heading\">How to Apply?<\/h2>\n<p> <\/p>\n<p>You can apply online by ASBA facility provided by banks. It\u2019s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work.<\/p>\n<p> <\/p>\n<blockquote class=\"wp-block-quote\">\n<p><strong>Learn:\u00a0<\/strong><a href=\"http:\/\/www.apnaplan.com\/ipo-asba\/\">How to apply for NCD issues using ASBA?<\/a><\/p>\n<\/blockquote>\n<p> <\/p>\n<p>In case you don&#8217;t want to do it online, you can download the application form from company site or Financial Institutions and submit to collection centers.<\/p>\n<figure id=\"attachment_10931\" aria-describedby=\"caption-attachment-10931\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10931\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LT-Finance-NCD-\u2013-April-2019.png\" alt=\"L&amp;T Finance NCD \u2013 April 2019\" width=\"1000\" height=\"539\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LT-Finance-NCD-\u2013-April-2019.png 1000w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LT-Finance-NCD-\u2013-April-2019-300x162.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/LT-Finance-NCD-\u2013-April-2019-768x414.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-10931\" class=\"wp-caption-text\"><strong>L&amp;T Finance NCD \u2013 April 2019<\/strong><\/figcaption><\/figure>\n<p><strong>  <\/p>\n<ol>\n<li>My recommendation is to<strong> invest some part of your Fixed Income investment in this NCD Issue<\/strong><\/li>\n<li>You should always <strong>have diversified portfolio<\/strong> be it fixed deposit, NCD or equity investment<\/li>\n<li>Its good idea to <strong>remain invested till maturity<\/strong> because liquidity on exchanges are low and hence you would get lower than market value<\/li>\n<li><em><strong>If you plan to invest in this issue, do it early as most NCD issues are over-subscribed before the end date.<\/strong><\/em><\/li>\n<\/ol>\n<p>  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