{"id":9042,"date":"2018-03-30T09:55:23","date_gmt":"2018-03-30T04:25:23","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=9042"},"modified":"2018-04-08T15:48:33","modified_gmt":"2018-04-08T10:18:33","slug":"muthoot-finance-ncd-april-2018","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/muthoot-finance-ncd-april-2018\/","title":{"rendered":"9% Muthoot Finance NCD \u2013 April&#8217;18 \u2013 Should you Invest?"},"content":{"rendered":"<p style=\"text-align: justify;\">Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 9.00% interest rate. The issue\u00a0would open on April 9 and would close on\u00a0May 8, 2018.<\/p>\n<h2 style=\"text-align: justify;\">Muthoot Finance NCD \u2013 Significant Points:<\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><strong>Offer Period:<\/strong>\u00a0April 9 to May 8, 2018<\/li>\n<li style=\"text-align: justify;\"><strong>Annual Interest Rates<\/strong>\u00a0for Retail Investors: 8.00% to 9.00% depending on tenure<\/li>\n<li style=\"text-align: justify;\"><strong>Price of each bond:<\/strong>\u00a0Rs 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<\/strong>\u00a0for Retail Investor: Rs 10 Lakhs<\/li>\n<li style=\"text-align: justify;\"><strong>Credit Rating:\u00a0<\/strong>\u2018AA (Stable)\u2019 by ICRA and \u2018AA\/Stable\u2019 by CRISIL<\/li>\n<li style=\"text-align: justify;\"><strong>NCD Size:<\/strong> Rs. 500 Crores with an option to Retain Over-subscription Up to Rs 3,000 crore<\/li>\n<li style=\"text-align: justify;\"><strong>Allotment<\/strong>: First Come First Serve<\/li>\n<li style=\"text-align: justify;\"><strong>Listing:<\/strong>\u00a0Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/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;\">Muthoot Finance\u00a0NCD &#8211; Investment Options:<\/h2>\n<p style=\"text-align: justify;\">There are 10 options of investment in Muthoot Finance NCD.<\/p>\n<figure id=\"attachment_9047\" aria-describedby=\"caption-attachment-9047\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-9047\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-\u2013-Investment-options-1024x466.png\" alt=\"Muthoot Finance NCD \u2013 April 2018 \u2013 Investment options\" width=\"757\" height=\"344\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-\u2013-Investment-options-1024x466.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-\u2013-Investment-options-300x136.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-\u2013-Investment-options-768x349.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-\u2013-Investment-options.png 1454w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-9047\" class=\"wp-caption-text\"><strong>Muthoot Finance NCD \u2013 April 2018 \u2013 Investment options<\/strong><\/figcaption><\/figure>\n<h2 style=\"text-align: justify;\">Muthoot Finance\u00a0NCD &#8211; Who can Apply?<\/h2>\n<p style=\"text-align: justify;\">This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<ol style=\"text-align: justify;\">\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 High Networth Individuals (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 style=\"text-align: justify;\"><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 style=\"text-align: justify;\">However NRIs cannot apply for this NCD.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><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<h2 style=\"text-align: justify;\">Why you should invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li>The NCD is secured, which means the above debt is backed by assets of the company<\/li>\n<li>Largest Gold Loan player in India<\/li>\n<li style=\"text-align: justify;\">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 style=\"text-align: justify;\">No TDS if invested in Demat Form<\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\">Why you should not invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li>The interest rates trend is rising. In last two months <a href=\"https:\/\/www.apnaplan.com\/sbi-recurring-deposit-features-interest-rate-jan-2013\/\">SBI has raised its interest rate on fixed deposit by 0.75%<\/a>. It seems like the interest rates would go up more in near future. Hence should not lock your investment for long term.<\/li>\n<li>The fortune of Gold Loan companies are dependent on Gold Prices. Any negative correction to Gold prices can be bad for company<\/li>\n<li>There has been consistent drop in profits of the company and increase in NPAs. If this continues, there might be issues in serving regular interests.<\/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 <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<blockquote><p><strong>Also Read:<\/strong> <a href=\"http:\/\/www.apnaplan.com\/government-savings-bonds-invest\/\">7.75% Government of India Savings Bonds \u2013 Should you Invest?<\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">How to Apply?<\/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>\n<p style=\"text-align: justify;\"><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 style=\"text-align: justify;\">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<p style=\"text-align: justify;\">Also note that only option I to VI is also available in Physical Form while option VII to X would only be available in Demat Form.<\/p>\n<h2 style=\"text-align: justify;\">Recommendation:<\/h2>\n<ol style=\"text-align: justify;\">\n<li>My recommendation is to<strong> invest some part of your Fixed Income investment in this NCD Issue<\/strong><\/li>\n<li>The <strong>interest rates are likely to go up in near future<\/strong>, hence select less than 2\/3 years tenure.<\/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<\/ol>\n<p style=\"text-align: justify;\"><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><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 9.00% interest rate. The issue\u00a0would open on April 9 and would close on\u00a0May 8, 2018. Muthoot Finance NCD \u2013 Significant Points: Offer Period:\u00a0April 9 to May 8, 2018 Annual Interest Rates\u00a0for Retail Investors: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9045,"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 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":[260,2326,2327],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018.png",993,539,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-300x163.png",300,163,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018-768x417.png",768,417,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018.png",993,539,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018.png",993,539,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018.png",993,539,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/03\/Muthoot-Finance-NCD-\u2013-April-2018.png",120,65,false]},"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 public issue of non-convertible debentures (NCD) offering up to 9.00% interest rate. The issue\u00a0would open on April 9 and would close on\u00a0May 8, 2018. Muthoot Finance NCD \u2013 Significant Points: Offer Period:\u00a0April 9 to May 8, 2018 Annual Interest Rates\u00a0for Retail Investors:&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/9042"}],"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=9042"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/9042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/9045"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=9042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=9042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=9042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}