{"id":9417,"date":"2018-05-18T10:11:15","date_gmt":"2018-05-18T04:41:15","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=9417"},"modified":"2018-05-23T12:29:27","modified_gmt":"2018-05-23T06:59:27","slug":"dhfl-ncd-may18","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/dhfl-ncd-may18\/","title":{"rendered":"9.10% DHFL NCD &#8211; May\/June&#8217;18 \u2013 Should you Invest?"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Dewan Housing Finance Corp Ltd (DHFL)<\/strong> has come out with public issue of non-convertible debentures (NCD) offering up to 9.10% interest rate. The issue opens on May 22 and closes on June 4, 2018.<\/p>\n<p style=\"text-align: justify;\"><strong>DHFL is a deposit-taking housing finance company and\u00a0among the 50 biggest financial companies in India.<\/strong> It is the second housing finance company to be established in the country with focus on low and medium income housing finance in Tier 2 &amp; 3 cities.<\/p>\n<h2 style=\"text-align: justify;\">DHFL NCD \u2013 Significant Points:<\/h2>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong>\u00a0May 22 to June 4, 2018<\/li>\n<li><strong>Annual Interest Rates for Retail Investors:<\/strong>\u00a08.90% to 9.10% depending on tenure<\/li>\n<li><strong>Additional Interest:<\/strong> 0.1% for Senior Citizens. Also incentives for investors who hold the NCD till maturity<\/li>\n<li><strong>Price of each bond:<\/strong> Rs 1,000<\/li>\n<li><strong>Minimum Investment:<\/strong> 10 Bonds (Rs 10,000)<\/li>\n<li><strong>Max Investment Limit<\/strong> for Retail Investor: Rs 10 Lakhs<\/li>\n<li><strong>Credit Rating:<\/strong> \u2018CARE AAA;Stable (Triple A; Outlook: Stable\u2019) and \u2018BWR AAA (BWR Triple A), Outlook: Stable\u2019<\/li>\n<li><strong>NCD Size:<\/strong> Rs 9,000 crore with option to retain over-subscription upto\u00a0Rs 12,000 crore<\/li>\n<li><strong>Allotment:<\/strong> First Come First Serve<\/li>\n<li><strong>Listing:<\/strong> Bonds would be listed on Stock exchange and will entail capital gains tax on exit through secondary market<\/li>\n<\/ul>\n<blockquote><p><strong>Also Read<\/strong> \u2013 <a href=\"http:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\">Know NCD \u2013 Investment Tips, TDS and Taxation<\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">DHFL NCD &#8211; Investment Options:<\/h2>\n<p style=\"text-align: justify;\">There are 7 options of investment in DHFL NCD.<\/p>\n<figure id=\"attachment_9419\" aria-describedby=\"caption-attachment-9419\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-9419\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-May-2018-Interest-Rates-1024x716.png\" alt=\"DHFL NCD - May 2018 - Interest Rates\" width=\"757\" height=\"529\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-May-2018-Interest-Rates-1024x716.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-May-2018-Interest-Rates-300x210.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-May-2018-Interest-Rates-768x537.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-May-2018-Interest-Rates.png 1208w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-9419\" class=\"wp-caption-text\"><strong>DHFL NCD &#8211; May 2018 &#8211; Interest Rates<\/strong><\/figcaption><\/figure>\n<p><strong>Series VII offers floating interest rat<\/strong>e benchmarked to\u00a0MIBOR (Mumbai Inter-Bank Offered Rate). As of May 17, 2018 this was 6.05%. So as of today the interest rate on offer would be 8.21% (6.05% + 2.16%). You can<a href=\"http:\/\/www.fimmda.org\/modules\/securitiesApproval\/securitiesApproval.aspx?op=mibor\" target=\"_blank\" rel=\"noopener\"> check latest MIBOR rates here<\/a>.<\/p>\n<p style=\"text-align: justify;\"><strong>Senior Citizens<\/strong> shall be eligible for an additional incentive\u00a0of 0.10% p.a.<\/p>\n<p style=\"text-align: justify;\"><strong>Retail Investors and HNIs who hold the NCD till maturity<\/strong> shall be eligible for a one-time\u00a0additional incentive of 0.50%, 0.70%, 1.00% and 0.50% for Series II, Series III, Series IV and Series VI respectively, payable along with last interest payment.<\/p>\n<blockquote><p><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><\/blockquote>\n<h2 style=\"text-align: justify;\">DHFL NCD &#8211; Who can Apply?<\/h2>\n<p style=\"text-align: justify;\">This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<figure id=\"attachment_9420\" aria-describedby=\"caption-attachment-9420\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-9420\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-_-May-2018-Who-can-Apply-1024x153.png\" alt=\"DHFL NCD - May 2018 - Who can Apply\" width=\"757\" height=\"113\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-_-May-2018-Who-can-Apply-1024x153.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-_-May-2018-Who-can-Apply-300x45.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-_-May-2018-Who-can-Apply-768x114.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-_-May-2018-Who-can-Apply.png 1188w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-9420\" class=\"wp-caption-text\"><strong>DHFL NCD &#8211; May 2018 &#8211; Who can Apply<\/strong><\/figcaption><\/figure>\n<p style=\"text-align: justify;\">Retail Investors can apply for allotment of NCDs in both physical form or Demat Form.<\/p>\n<p style=\"text-align: justify;\"><strong>NRIs cannot apply for this NCD.<\/strong><\/p>\n<h2 style=\"text-align: justify;\">Why you should invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li>AAA Credit rating which is the Best rating assigned<\/li>\n<li>Top 50 Finance companies in India<\/li>\n<li>The <a style=\"-webkit-text-stroke-width: 0.15px;\" 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>No TDS if invested in Demat Form<\/li>\n<\/ol>\n<blockquote><p>Also Read:\u00a0<a href=\"http:\/\/www.apnaplan.com\/highest-interest-rate-on-recurring-deposits-rd\/\">Highest Interest Rate on Recurring Deposits<\/a><\/p><\/blockquote>\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 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 alternate investment for People in highest tax bracket.<\/li>\n<\/ol>\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><p><strong>Learn:\u00a0<\/strong><a href=\"http:\/\/www.apnaplan.com\/ipo-asba\/\">How to apply for NCD issues using ASBA?<\/a><\/p><\/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<figure id=\"attachment_9418\" aria-describedby=\"caption-attachment-9418\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9418\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png\" alt=\"DHFL NCD Advertisement - May 2018\" width=\"757\" height=\"836\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png 757w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018-272x300.png 272w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-9418\" class=\"wp-caption-text\"><strong>DHFL NCD Advertisement &#8211; May 2018<\/strong><\/figcaption><\/figure>\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>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. Alos there is incentive if you hold NCD till maturity<\/li>\n<li>You can also <strong>play rising interest rate by opting for Series VII<\/strong> which is linked to MIBOR rates.<\/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>Dewan Housing Finance Corp Ltd (DHFL) has come out with public issue of non-convertible debentures (NCD) offering up to 9.10% interest rate. The issue opens on May 22 and closes on June 4, 2018. DHFL is a deposit-taking housing finance company and\u00a0among the 50 biggest financial companies in India. It is the second housing finance [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9418,"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":[205,3037,3038],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png",757,836,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018-272x300.png",272,300,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png",757,836,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png",757,836,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png",757,836,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png",757,836,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2018\/05\/DHFL-NCD-Advertisement-May-2018.png",109,120,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":8,"uagb_excerpt":"Dewan Housing Finance Corp Ltd (DHFL) has come out with public issue of non-convertible debentures (NCD) offering up to 9.10% interest rate. The issue opens on May 22 and closes on June 4, 2018. DHFL is a deposit-taking housing finance company and\u00a0among the 50 biggest financial companies in India. It is the second housing finance&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/9417"}],"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=9417"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/9417\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/9418"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=9417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=9417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=9417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}