{"id":5883,"date":"2015-01-30T03:18:03","date_gmt":"2015-01-30T03:18:03","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=5883"},"modified":"2015-03-18T10:08:39","modified_gmt":"2015-03-18T04:38:39","slug":"ifci-ncd-jan-feb-2015-invest","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/ifci-ncd-jan-feb-2015-invest\/","title":{"rendered":"9.5% IFCI NCD \u2013 Jan\/Feb 2015 \u2013 Should you Invest?"},"content":{"rendered":"<figure id=\"attachment_5902\" aria-describedby=\"caption-attachment-5902\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-5902\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1-300x174.png\" alt=\"IFCI NCD \u2013 Jan_Feb 2015 \u2013 Should you Invest\" width=\"300\" height=\"174\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1-300x174.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png 568w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-5902\" class=\"wp-caption-text\"><strong>IFCI NCD \u2013 Jan_Feb 2015 \u2013 Should you Invest?<\/strong><\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><strong>IFCI<\/strong> (Industrial Finance Corporation of India) a Government of India undertaking which caters to the long-term finance needs of the industrial sector has come out with Rs 250 crore (with an option to retain over-subscription up to Rs. 790.81 crore) public issue of non-convertible debentures (NCD) <strong>offering up to 9.50% interest rate.<\/strong><\/p>\n<h2 style=\"text-align: justify;\">IFCI Ltd. NCD \u2013 Significant Points:<\/h2>\n<ul>\n<li style=\"text-align: justify;\"><strong>Offer Period:<\/strong> January 01 \u2013 February 04, 2015<\/li>\n<li style=\"text-align: justify;\"><strong>Annual Interest Rates for Retail Investors:<\/strong> 9.45% to 9.50% depending on tenure<\/li>\n<li style=\"text-align: justify;\"><strong>Price of each bond:<\/strong> Rs 1,000<\/li>\n<li style=\"text-align: justify;\"><strong>Minimum Investment:<\/strong> 10 Bonds (Rs 10,000)<\/li>\n<li style=\"text-align: justify;\"><strong>Max Investment Limit for Retail Investor:<\/strong> Rs 2 Lakhs<\/li>\n<li style=\"text-align: justify;\"><strong>Credit Rating:<\/strong> \u00a0\u00a0\u2018AA-\u2019 by Brickwork, \u2018A\u2019 by ICRA<\/li>\n<li style=\"text-align: justify;\"><strong>Allotment:<\/strong> First Come First Serve<\/li>\n<li style=\"text-align: justify;\"><strong>Demat\/Physical Form:<\/strong> Investors can get allotment either in their Demat account or physical certificates as per their choice<\/li>\n<li style=\"text-align: justify;\"><strong>Listing:<\/strong> Bonds would be listed on BSE\/ NSE within 12 days of closing of issue<\/li>\n<\/ul>\n<blockquote><p><span style=\"background-color: #ffcc00;\"><strong style=\"font-style: italic;\">Also Read<\/strong><\/span><span style=\"font-style: italic;\"><span style=\"background-color: #ffcc00;\">\u00a0\u2013<\/span>\u00a0<\/span><span style=\"font-style: italic;\"><a style=\"font-weight: inherit; font-style: inherit; color: #005fa1;\" href=\"http:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\"><span style=\"font-weight: inherit; font-style: inherit;\">Know NCD \u2013 Investment Tips, TDS and Taxation<\/span><\/a><\/span><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">IFCI Ltd. NCD \u2013 Investment Options:<\/h2>\n<p style=\"text-align: justify;\">There are 4 options of investment in IFCI Ltd. NCD.<\/p>\n<figure id=\"attachment_5887\" aria-describedby=\"caption-attachment-5887\" style=\"width: 999px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5887\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Investment-Options-Jan_Feb-2015.png\" alt=\"IFCI NCD \u2013 Investment Options - Jan_Feb 2015\" width=\"999\" height=\"462\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Investment-Options-Jan_Feb-2015.png 999w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Investment-Options-Jan_Feb-2015-300x139.png 300w\" sizes=\"(max-width: 999px) 100vw, 999px\" \/><figcaption id=\"caption-attachment-5887\" class=\"wp-caption-text\"><strong>IFCI NCD \u2013 Investment Options &#8211; Jan\/Feb 2015<\/strong><\/figcaption><\/figure>\n<h2 style=\"text-align: justify;\">IFCI\u00a0NCD \u2013 Who can Apply?<\/h2>\n<p style=\"text-align: justify;\">This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<ul>\n<li style=\"text-align: justify;\">Category I \u2013 Institutional Investors \u2013 25% of the issue is reserved<\/li>\n<li style=\"text-align: justify;\">Category II \u2013 Domestic Corporate \u2013 25% of the issue is reserved<\/li>\n<li style=\"text-align: justify;\">Category III \u2013 Non-Institutional Investors\/ HNIs including HUFs \u2013 25% of the issue is reserved<\/li>\n<li style=\"text-align: justify;\">Category IV \u2013 <strong>Retail Individual Investors including HUFs<\/strong> \u2013 25% of the issue is reserved<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><em>However NRIs cannot apply for this NCD.<\/em><\/p>\n<p style=\"text-align: justify;\">You are considered as <em><strong>Retail investor (Category IV), if you invest less than Rs 2 Lakhs in the issue<\/strong><\/em>.<\/p>\n<h2 style=\"text-align: justify;\">Why you should invest?<\/h2>\n<ol>\n<li style=\"text-align: justify;\">IFCI is <strong>owned by Government of India, so the chances of default is very low<\/strong><\/li>\n<li style=\"text-align: justify;\">The <strong>NCD is secured<\/strong>, which means the above debt is backed by assets of the company<\/li>\n<li style=\"text-align: justify;\">The<strong> interest rates are better than your regular FDs<\/strong><\/li>\n<li style=\"text-align: justify;\">With <strong>further rate cuts expected from RBI<\/strong>, the next tranche of NCDs might have lower coupon rates. So if you have money you can <strong>lock your investment at higher interest rates.<\/strong><\/li>\n<li style=\"text-align: justify;\">Also with fall in interest rates, <strong>you can expect good capital gains going forward<\/strong>. \u00a0The bond can be sold in secondary market making good capital gains even before maturity.<\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\">Why you should not invest?<\/h2>\n<ol>\n<li style=\"text-align: justify;\">The <strong>non-performing asset (NPA) levels of IFCI are very high<\/strong>, which is one of the reasons behind its relatively lower credit rating<\/li>\n<li style=\"text-align: justify;\">The <strong>interest offered is not good for people in highest tax bracket.<\/strong> Even today tax free bonds offer yield of more than 7%. For IFCI NCD the post tax return for 30% tax bracket is 6.56%.<\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\">How to Apply?<\/h2>\n<p style=\"text-align: justify;\">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<\/p>\n<p style=\"text-align: justify;\">In case you don\u2019t have Demat Account, you can download the application form from company site or Financial Institutions and submit to collection centers.<\/p>\n<h2 style=\"text-align: justify;\">Recommendation:<\/h2>\n<p style=\"text-align: justify;\">Most banks have cut their fixed deposit rates recently and with further rate cuts expected from RBI, the FD rates would go down further. IFCI NCD is from government backed company and the chances of default are very low despite not so great credit rating. <strong>My recommendation is to invest some part of your Fixed Income investment in this NCD Issue if you are not in the highest tax bracket.<\/strong><\/p>\n<p style=\"text-align: justify;\">You should always have diversified portfolio be it fixed deposit, NCD or equity investment<\/p>\n<p style=\"text-align: justify;\">Its good idea to remain invested till maturity because liquidity on exchanges is low and hence you would get lower than market value<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IFCI (Industrial Finance Corporation of India) a Government of India undertaking which caters to the long-term finance needs of the industrial sector has come out with Rs 250 crore (with an option to retain over-subscription up to Rs. 790.81 crore) public issue of non-convertible debentures (NCD) offering up to 9.50% interest rate. IFCI Ltd. NCD [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5902,"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":[33,2631,2632,2633],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png",568,330,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1-300x174.png",300,174,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png",568,330,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png",568,330,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png",568,330,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png",568,330,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2015\/01\/IFCI-NCD-\u2013-Jan_Feb-2015-\u2013-Should-you-Invest1.png",120,70,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"IFCI (Industrial Finance Corporation of India) a Government of India undertaking which caters to the long-term finance needs of the industrial sector has come out with Rs 250 crore (with an option to retain over-subscription up to Rs. 790.81 crore) public issue of non-convertible debentures (NCD) offering up to 9.50% interest rate. IFCI Ltd. NCD&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/5883"}],"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=5883"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/5883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/5902"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=5883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=5883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=5883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}