{"id":4972,"date":"2014-06-01T01:13:49","date_gmt":"2014-05-31T19:43:49","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=4972"},"modified":"2014-06-22T01:48:58","modified_gmt":"2014-06-21T20:18:58","slug":"muthoot-finance-ncd-june-2014-should-you-invest","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/muthoot-finance-ncd-june-2014-should-you-invest\/","title":{"rendered":"Muthoot Finance NCD \u2013 June 2014 \u2013 Should you Invest?"},"content":{"rendered":"<p>Muthoot Finance, the dominant player in Gold Loan Business has come out with Rs 500 crore public issue of non-convertible debentures (NCD) offering up to 11.75% interest rate.<\/p>\n<h2>Muthoot Finance NCD \u2013 Significant Points:<\/h2>\n<ul>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Offer Period:<\/strong> May 26 \u2013 June 26, 2014<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Annual Interest Rates<\/strong> for Retail Investors: 10.50% to 11.75% depending on tenure<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">There is also an option where the money doubles in 6 Years 3 Months (11.70% annual interest)<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Price of each bond:<\/strong> Rs 1,000<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Minimum Investment<\/strong>: 10 Bonds (Rs 10,000)<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Max Investment Limit<\/strong> for Retail Investor: Rs 10 Lakhs<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Credit Rating<\/strong>: \u2018ICRA AA-\/Stable\u2019 by ICRA<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Allotment<\/strong>: First Come First Serve<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Listing:<\/strong> Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\"><strong>Loan against NCDs:<\/strong> The Company, at its sole discretion, subject to applicable statutory and\/or regulatory requirements, may consider granting of a loan facility to the holders of NCDs against the security of such NCDs<\/span><\/li>\n<\/ul>\n<h2>Muthoot Finance\u00a0NCD &#8211; Investment Options:<\/h2>\n<p>There are 11 options of investment in Muthoot Finance NCD.<\/p>\n<figure id=\"attachment_4974\" aria-describedby=\"caption-attachment-4974\" style=\"width: 661px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-4974\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-\u2013-Investment-Options-June-20141-1024x316.png\" alt=\"Muthoot Finance NCD \u2013 Investment Options - June 2014\" width=\"661\" height=\"203\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-\u2013-Investment-Options-June-20141-1024x316.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-\u2013-Investment-Options-June-20141-300x92.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-\u2013-Investment-Options-June-20141.png 1498w\" sizes=\"(max-width: 661px) 100vw, 661px\" \/><figcaption id=\"caption-attachment-4974\" class=\"wp-caption-text\">Muthoot Finance NCD \u2013 Investment Options &#8211; June 2014<\/figcaption><\/figure>\n<p>The first 10 options are secured while the last option which doubles the money in 6 Years 3 Months is unsecured.<\/p>\n<h2>Muthoot Finance\u00a0NCD &#8211; Who can Apply?<\/h2>\n<p>This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<ol>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Category I \u2013 Institutional Investors \u2013 5% of the issue is reserved<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Category II \u2013 Non-Institutional Investors, Corporates \u2013 5% of the issue is reserved<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Category III \u2013 Retail Individual Investors including HUFs \u2013 90% of the issue is reserved<\/span><\/li>\n<\/ol>\n<p>However NRIs cannot apply for this NCD.<\/p>\n<h2>Why you should invest?<\/h2>\n<ol>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">The financials of the company is healthy<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">The NCD is secured, which means the above debt is backed by assets of the company<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">The interest rates are better than your regular FDs<\/span><\/li>\n<\/ol>\n<h2>Why you should not invest?<\/h2>\n<ol>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">The fortune of Gold Loan companies are dependent on Gold Prices. Any negative correction to Gold prices can be bad for company<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">There are other competing NCDs with similar interest rates<\/span><\/li>\n<\/ol>\n<h2>How to Apply?<\/h2>\n<p>If you have Demat account apply through that. It\u2019s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work<br \/>\nIn case you don&#8217;t have Demat Account, you can download the application form from company site or Financial Institutions and submit to collection centers.<\/p>\n<p>Also note that only option I to VI is also available in Physical Form while option VII to XI would only be available in Demat Form.<\/p>\n<h2>Conclusion:<\/h2>\n<ol>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">My recommendation is to invest some part of your Fixed Income investment in this NCD Issue<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">The Option X1 (Doubling Money) is riskier than other options as that is unsecure. You should keep away from that option. The difference of 0.2% interest does not justify the risk<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">You should always have diversified portfolio be it fixed deposit, NCD or equity investment<\/span><\/li>\n<li><span style=\"-webkit-text-stroke-color: initial; -webkit-text-stroke-width: 0.15px;\">Its good idea to remain invested till maturity because liquidity on exchanges are low and hence you would get lower than market value<\/span><\/li>\n<\/ol>\n<h2>Muthoot Finance NCD:<\/h2>\n<figure id=\"attachment_4975\" aria-describedby=\"caption-attachment-4975\" style=\"width: 960px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-Details-June-2014-.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-4975 size-full\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-Details-June-2014-.png\" alt=\"Muthoot Finance NCD Details - June 2014\" width=\"960\" height=\"1204\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-Details-June-2014-.png 960w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-Details-June-2014--239x300.png 239w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-Details-June-2014--816x1024.png 816w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><\/a><figcaption id=\"caption-attachment-4975\" class=\"wp-caption-text\"><strong>Muthoot Finance NCD Details &#8211; June 2014 <\/strong>(Click to Enlarge)<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Muthoot Finance, the dominant player in Gold Loan Business has come out with Rs 500 crore public issue of non-convertible debentures (NCD) offering up to 11.75% interest rate. Muthoot Finance NCD \u2013 Significant Points: Offer Period: May 26 \u2013 June 26, 2014 Annual Interest Rates for Retail Investors: 10.50% to 11.75% depending on tenure There [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4978,"comment_status":"open","ping_status":"open","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 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":[31,30,194],"tags":[260,2328,2326,2327],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014.png",575,333,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014-300x173.png",300,173,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014.png",575,333,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014.png",575,333,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014.png",575,333,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014.png",575,333,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Muthoot-Finance-NCD-June-2014-120x120.png",120,120,true]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Muthoot Finance, the dominant player in Gold Loan Business has come out with Rs 500 crore public issue of non-convertible debentures (NCD) offering up to 11.75% interest rate. Muthoot Finance NCD \u2013 Significant Points: Offer Period: May 26 \u2013 June 26, 2014 Annual Interest Rates for Retail Investors: 10.50% to 11.75% depending on tenure There&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4972"}],"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=4972"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/4972\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4978"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=4972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=4972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=4972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}