{"id":10993,"date":"2019-04-16T14:23:34","date_gmt":"2019-04-16T08:53:34","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=10993"},"modified":"2019-05-21T12:04:23","modified_gmt":"2019-05-21T06:34:23","slug":"magma-fincorp-limited-ncd-apr19","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/magma-fincorp-limited-ncd-apr19\/","title":{"rendered":"10.75% Magma Fincorp Limited NCD \u2013 Apr&#8217;19 \u2013 Should you Invest?"},"content":{"rendered":"\n<p><strong>Magma Fincorp Limited<\/strong>\u00a0is a non-banking finance company, incorporated on December 18, 1978\u00a0<strong>has come out with public issue of non-convertible debentures (NCD) offering up to 10.75% interest rate<\/strong>. Company is engaged in providing asset backed financing for new and pre-owned auto and utility vehicles, tractors, cars and commercial vehicles, mortgage financing, financing to SMEs and distribution of general insurance products.<\/p>\n<h2>Magma Fincorp NCD \u2013 Significant Points:<\/h2>\n<ul>\n<li><strong>Offer Period:<\/strong>\u00a0April 8 to May 8, 2019<\/li>\n<li><strong>Annual Interest Rates<\/strong>\u00a0for Retail Investors: 10.25% to 10.75% 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>\u201cBWRAA (Outlook: Stable)\u201d by Brickworks and \u201cACUITEAA\/Stable\u201d by Acuite<\/li>\n<li><strong>NCD Size:<\/strong>\u00a0Rs. 200 Crores with an option to Retain Over-subscription Up to Rs 500 crore<\/li>\n<li><strong>Allotment<\/strong>: First Come First Serve<\/li>\n<li><strong>Listing:<\/strong>\u00a0Bonds would be listed on BSE &amp; NSE and will entail capital gains tax on exit through secondary market<\/li>\n<\/ul>\n<blockquote class=\"wp-block-quote\">\n<p><strong>Also Read<\/strong><em>\u00a0\u2013\u00a0<\/em><em><a href=\"https:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\">Know NCD \u2013 Investment Tips, TDS and Taxation<\/a><\/em><\/p>\n<\/blockquote>\n<h2>Magma Fincorp NCD \u2013 Investment Options:<\/h2>\n<p>There are 7 options of investment in Magma Fincorp NCD.<\/p>\n<figure id=\"attachment_10995\" aria-describedby=\"caption-attachment-10995\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-10995\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-\u2013-Investment-options-1024x387.png\" alt=\"Magma Fincorp Limited NCD \u2013 April 2019 \u2013 Investment options\" width=\"757\" height=\"286\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-\u2013-Investment-options-1024x387.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-\u2013-Investment-options-300x113.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-\u2013-Investment-options-768x290.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-\u2013-Investment-options.png 1271w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-10995\" class=\"wp-caption-text\"><strong>Magma Fincorp Limited NCD \u2013 April 2019 \u2013 Investment options<\/strong><\/figcaption><\/figure>\n<div id=\"attachment_10995\" class=\"wp-caption aligncenter\"><\/div>\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>Magma Fincorp NCD \u2013 Who can Apply?<\/h2>\n<p>This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<ol>\n<li>Category I \u2013 Institutional Investors \u2013 20% of the issue is reserved<\/li>\n<li>Category II \u2013 Non-Institutional Investors, Corporates \u2013 20% of the issue is reserved<\/li>\n<li>Category III \u2013 HNIs \u2013 30% of the issue is reserved<\/li>\n<li>Category IV \u2013 Retail Individual Investors \u2013 30% of the issue is reserved<\/li>\n<\/ol>\n<p>However NRIs cannot apply for this NCD.<\/p>\n<blockquote class=\"wp-block-quote\">\n<p><strong>Also Read:<\/strong>\u00a0<a href=\"https:\/\/www.apnaplan.com\/tax-free-incomes-investments\/\">25 Tax Free Incomes &amp; Investments in India<\/a><\/p>\n<\/blockquote>\n<h2>Why you should invest?<\/h2>\n<ol>\n<li>AA Credit rating means less likely hood of credit default<\/li>\n<li>The NCD is secured, which means the above debt is backed by assets of the company<\/li>\n<li>The\u00a0<a href=\"https:\/\/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<h2>Why you should not invest?<\/h2>\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\u00a0<a href=\"https:\/\/www.apnaplan.com\/category\/fixed-income\/bonds\/tax-free-bond\/\">Tax Free Bonds<\/a>\u00a0are offering yields up to 6.5% in secondary market, which is better investment for People in highest tax bracket.<\/li>\n<\/ol>\n<h2>How to Apply?<\/h2>\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<blockquote class=\"wp-block-quote\">\n<p><strong>Learn:\u00a0<\/strong><a href=\"https:\/\/www.apnaplan.com\/ipo-asba\/\">How to apply for NCD issues using ASBA?<\/a><\/p>\n<\/blockquote>\n<p>In case you don\u2019t 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_10994\" aria-describedby=\"caption-attachment-10994\" style=\"width: 997px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-10994\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019.png\" alt=\"Magma Fincorp Limited NCD \u2013 April 2019\" width=\"997\" height=\"539\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019.png 997w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-300x162.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/04\/Magma-Fincorp-Limited-NCD-\u2013-April-2019-768x415.png 768w\" sizes=\"(max-width: 997px) 100vw, 997px\" \/><figcaption id=\"caption-attachment-10994\" class=\"wp-caption-text\"><strong>Magma Fincorp Limited NCD \u2013 April 2019<\/strong><\/figcaption><\/figure>\n<div id=\"attachment_10994\" class=\"wp-caption aligncenter\"><\/div>\n<h2>Recommendation:<\/h2>\n<ol>\n<li>My recommendation is to<strong>\u00a0invest some part of your Fixed Income investment in this NCD Issue<\/strong><\/li>\n<li>You should always\u00a0<strong>have diversified portfolio<\/strong>\u00a0be it fixed deposit, NCD or equity investment<\/li>\n<li>Its good idea to\u00a0<strong>remain invested till maturity<\/strong>\u00a0because liquidity on exchanges are low and hence you would get lower than market value<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Magma Fincorp Limited is a non-banking finance company, incorporated on December 18, 1978 has come out with public issue of non-convertible debentures (NCD) offering up to 10.75% interest rate.<\/p>\n","protected":false},"author":1,"featured_media":10994,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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Fincorp Limited is a non-banking finance company, incorporated on December 18, 1978 has come out with public issue of non-convertible debentures (NCD) offering up to 10.75% interest rate.","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/10993"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=10993"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/10993\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/10994"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=10993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=10993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=10993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}