{"id":11696,"date":"2020-01-03T09:32:28","date_gmt":"2020-01-03T04:02:28","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=11696"},"modified":"2020-06-17T20:17:40","modified_gmt":"2020-06-17T14:47:40","slug":"shriram-transport-finance-ncd-jan20","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/shriram-transport-finance-ncd-jan20\/","title":{"rendered":"9.10% Shriram Transport Finance NCD \u2013 Jan\u201920 \u2013 Should you Invest?"},"content":{"rendered":"\n<p style=\"text-align: justify;\"><strong>Shriram Transport Finance Company<\/strong> Ltd, one of the largest asset financing non-banking finance companies for commercial vehicles has come out with <strong>public issue of non-convertible debentures (NCD) offering up to 9.10% interest rate.<\/strong> The issue opens on January 6 and closes on January 22, 2020.<\/p>\n<h2 style=\"text-align: justify;\"><span id=\"Shriram_Transport_Finance_NCD_Significant_Points\">Shriram Transport Finance NCD \u2013 Significant Points:<\/span><\/h2>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong> January 6 to 22, 2020<\/li>\n<li><strong>Annual Interest Rates for Retail Investors:<\/strong> 8.52% to 9.10% depending on tenure.<\/li>\n<li><strong>Additional 0.25% interest<\/strong>\u00a0for Senior Citizens<\/li>\n<li><strong>Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n<li><strong>Minimum Investment:<\/strong>\u00a010 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>\u00a0\u2018CRISIL AA+\/Stable\u2019 by CRISIL \u2018IND AA+: Outlook Stable\u2019 by India Ratings and Research<\/li>\n<li><strong>NCD Size:<\/strong> Rs 200 crore with option to retain over-subscription upto Rs 1,000 crore<\/li>\n<li><strong>Allotment:<\/strong>\u00a0First 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>\u00a0\u2013\u00a0<a href=\"https:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\">Know NCD \u2013 Investment Tips, TDS and Taxation<\/a><\/p>\n<\/blockquote>\n<h2 style=\"text-align: justify;\"><span id=\"Shriram_Transport_Finance_NCD_8211_Investment_Options\">Shriram Transport Finance NCD \u2013 Investment Options:<\/span><\/h2>\n<p style=\"text-align: justify;\">There are 8 options of investment in Shriram Transport Finance NCD.<\/p>\n<figure id=\"attachment_11698\" aria-describedby=\"caption-attachment-11698\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-11698\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-Jan-2020-\u2013-Investment-Options-1024x540.png\" alt=\"Shriram Transport Finance NCD \u2013 Jan 2020 \u2013 Investment Options\" width=\"757\" height=\"399\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-Jan-2020-\u2013-Investment-Options-1024x540.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-Jan-2020-\u2013-Investment-Options-300x158.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-Jan-2020-\u2013-Investment-Options-768x405.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-Jan-2020-\u2013-Investment-Options.png 1556w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-11698\" class=\"wp-caption-text\"><strong>Shriram Transport Finance NCD \u2013 Jan 2020 \u2013 Investment Options<\/strong><\/figcaption><\/figure>\n<p><em>The amount payable on redemption to Senior Citizens for NCDs under Series VII and Series VIII is 1,298.91 and 1,557.11 per NCD<\/em><\/p>\n<blockquote>\n<p><strong>Also Read:\u00a0<a href=\"https:\/\/www.apnaplan.com\/tax-free-incomes-investments\/\">25 Tax Free Incomes &amp; Investments in India<\/a><\/strong><\/p>\n<\/blockquote>\n<h2 style=\"text-align: justify;\"><span id=\"Shriram_Transport_Finance_NCD_8211_Who_can_Apply\">Shriram Transport Finance NCD \u2013 Who can Apply?<\/span><\/h2>\n<p style=\"text-align: justify;\">This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<ul style=\"text-align: justify;\">\n<li>Category I \u2013 QIB Investors \u2013 10% of the issue is reserved<\/li>\n<li>Category II \u2013 Corporate Investors \u2013 10% of the issue is reserved<\/li>\n<li>Category III \u2013 HNIs Investors \u2013 40% of the issue is reserved<\/li>\n<li>Category IV \u2013 Retail Individual Investors including HUFs \u2013 40% of the issue is reserved<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>NRIs cannot apply for this NCD.<\/strong><\/p>\n<h2 style=\"text-align: justify;\"><span id=\"Why_you_should_invest\">Why you should invest?<\/span><\/h2>\n<ol style=\"text-align: justify;\">\n<li>AA+ Credit rating means very less likely hood of credit default<\/li>\n<li>Unique business model with a strong brand name and a track record of strong financial performance<\/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<li>The NCD is secured, which means the above debt is backed by assets of the company<\/li>\n<li>The interest rate has started to go down, so a good time to lock in high interest rate.<\/li>\n<\/ol>\n<blockquote class=\"wp-block-quote\">\n<p>Also Read:\u00a0<a href=\"https:\/\/www.apnaplan.com\/highest-interest-rate-on-recurring-deposits-rd\/\">Highest Interest Rate on Recurring Deposits<\/a><\/p>\n<\/blockquote>\n<h2 style=\"text-align: justify;\"><span id=\"Why_you_should_not_invest\">Why you should not invest?<\/span><\/h2>\n<ol style=\"text-align: justify;\">\n<li>There have been issues with some well rated companies like DHFL,<br data-rich-text-line-break=\"true\" \/>IL&amp;FS where rating agencies suddenly downgrade the rating. This risk always existed but it has come to forefront in last few months<\/li>\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<li>You can also invest in\u00a0<a href=\"https:\/\/www.apnaplan.com\/company-fixed-deposit\/\">high rated company fixed deposits<\/a><\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\"><span id=\"How_to_Apply\">How to Apply?<\/span><\/h2>\n<p style=\"text-align: justify;\">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 style=\"text-align: justify;\">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_11704\" aria-describedby=\"caption-attachment-11704\" style=\"width: 1002px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11704\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png\" alt=\"Shriram Transport Finance NCD \u2013 January 2020\" width=\"1002\" height=\"540\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png 1002w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020-300x162.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020-768x414.png 768w\" sizes=\"(max-width: 1002px) 100vw, 1002px\" \/><figcaption id=\"caption-attachment-11704\" class=\"wp-caption-text\"><strong>Shriram Transport Finance NCD \u2013 January 2020<\/strong><\/figcaption><\/figure>\n<h2 style=\"text-align: justify;\"><span id=\"Recommendation\">Recommendation:<\/span><\/h2>\n<ol style=\"text-align: justify;\">\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<p style=\"text-align: justify;\"><strong>If you plan to invest in this issue, do it early as most good NCD issues are over-subscribed before the end date.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8216;AA+&#8217; Rated NCD from Shriram Transport Finance offering coupon rate of up to 9.1% is open for subscription \ud83d\udcb0\ud83d\udcb0\ud83d\udcb0. If you plan to invest in this issue, do it early as most good NCD issues are over-subscribed before the end date.<\/p>\n","protected":false},"author":1,"featured_media":11704,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"default","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":"default","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 center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[30,31,194],"tags":[3940,2642,3804,3805],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png",1002,540,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020-300x162.png",300,162,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020-768x414.png",768,414,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png",1002,540,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png",1002,540,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png",1002,540,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2020\/01\/Shriram-Transport-Finance-NCD-\u2013-January-2020.png",120,65,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"'AA+' Rated NCD from Shriram Transport Finance offering coupon rate of up to 9.1% is open for subscription \ud83d\udcb0\ud83d\udcb0\ud83d\udcb0. If you plan to invest in this issue, do it early as most good NCD issues are over-subscribed before the end date.","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11696"}],"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=11696"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/11696\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/11704"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=11696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=11696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=11696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}