What is Muthoot NCD?

NEW DELHI: Non-banking finance company (NBFC) Muthoot Fincorp Ltd has launched a non-convertible debenture (NCDs) issue, which will offer effective yield in the range of 8.57-10.20\%. The public issue of unsecured as well as the secured NCDs will be open for subscription from 30 September to 26 October.

What is NCD?

Non-convertible debentures (NCD) are fixed-income instruments, usually issued by high-rated companies in the form of a public issue to accumulate long-term capital appreciation. They offer relatively higher interest rates when compared to convertible debentures.

How does an NCD work?

Non-convertible debentures(NCDs) are a financial instrument that is used by companies to raise long-term capital. This is done through a public issue. NCDs are a debt instrument with a fixed tenure and people who invest in these receive regular interest at a certain rate.

How good is Muthoot Finance NCD?

Should you go for Muthoot Fincorp’s NCD issue offering up to 10.20\% interest? The issue has been rated A+ with a stable outlook by Crisil. As per experts, these ratings mean that the debentures carry low credit risk but are not as safe as AAA-rated instruments.

Is Muthoot NCD secured?

Gold loan non-banking financial company (NBFC) Muthoot Finance Ltd on Thursday launched its 25th issue of secured public non-convertible debentures (NCDs) with an aim to raise up to ₹1,700 crore. The NCD has a base issue size of ₹100 crore with an option to retain oversubscription of up to ₹1,600 crore.

What is NCD coupon rate?

Coupon Rate – The rate of interest offered by the issuer of NCD is called Coupon. Companies which carry higher risk give higher interest rate than others to lure investors for investment. There can be various options for interest payout such as monthly, quarterly, half yearly or annually.

What are the 4 most common types of NCD?

The main types of NCD are cardiovascular diseases (such as heart attacks and stroke), cancers, chronic respiratory diseases (such as chronic obstructive pulmonary disease and asthma) and diabetes.

How do I choose the best NCD?

Look at the ratings given by leading ratings agencies such as CRISIL and Fitch. A rating of AAA given by CRISIL is considered to be the best rating possible for an NCD. A rating above AA is generally considered good to invest.

What are the types of NCDs?

How can we avoid acquiring NCDs?

Many NCDs can be prevented by reducing common risk factors such as tobacco use, harmful alcohol use, physical inactivity and eating unhealthy diets. Many other important conditions are also considered NCDs, including injuries and mental health disorders.

Is it possible to sell NCDs in the debt market?

It is possible for listed NCDs to be sold in the debt market through the stock exchange platform. Bank FDs and NCDs give you interest which is added to your total income and hence both are taxable as per income tax slab.

Should you invest in ncncds issued by corporates?

NCDs issued by corporates have gained significant attention from retail investors in the recent past and it is worth your time to study the various factors involved before making a well-informed decision. What is a NCD?

When will Muthoot Finance NCD for Sep/Oct 2019 Open for subscription?

Muthoot Finance NCD for Sep/Oct 2019, Tranche-III would open for subscription on 27th September, 2019. Muthoot Finance is a leading gold loan company in India. It is issuing secured NCD’s now.

Who gives credit ratings for NCDs in India?

In India credit ratings for NCDs are given by agencies such as CRISIL, ICRA, CARE, India Ratings and Brickwork. A Listed NCD must be compulsorily rated by at least one credit rating agency.