Page 7 - Non-convertible Debentures

HDFC AMC takes 35% markdown on Simplex exposure after rating falls to 'D'

HDFC Credit Risk Fund had Rs 124 crore of exposure to the NCDs of the company

CCI approves subscription of Piramal debentures by Canadian investor

The preferential allotment will take place by November this year and the rights issue is expected to be completed by February 2020

Edelweiss eyes Rs 1.5 trn in personal wealth management corpus in 2-3 years

Its personal wealth management arm, which currently manages Rs one trillion, clocked a robust revenue growth of 35% CAGR in the last three financial years

Tata Power issues 15,000 non-convertible debentures, raises Rs 1,500 cr

The NCDs would be listed on WDM segment of NSE

Payment of principal obligations for NCD had been delayed: Reliance Capital

The payments were due on Wednesday and Thursday, the company said in regulatory filing.

Sebi allows MFs to invest in unlisted NCDs up to 10% of debt portfolio

This would be subject to such investments in unlisted NCDs having simple structures being rated, secured and with monthly coupons

Muthoot Finance to raise Rs 1,000 crore via NCDs to fund business growth

The issue opens on September 27, 2019 and closes on October 25, 2019

Fund raising via NCDs drop 67% on low investors' confidence in Apr-Aug FY20

NCDs are loan-linked bonds that cannot be converted into stocks and usually offer higher interest rates than convertible debentures

Small saving instruments, govt bonds a good alternative to NCDs: Experts

Experts are urging investors to stay conservative in their investment choices

Boost for start-ups

DVRs will encourage listing in India

L&T plans to raise up to Rs 1400 cr through NCDs on private placement basis

Infrastructure major Larsen and Toubro (L&T) on Wednesday said it plans to raise up to Rs 1,400 crore through issuance of non-convertible debentures (NCDs) on private placement basis. The company, however, did not elaborate on the reasons for raising funds. "The company proposes to issue rated, listed, unsecured, redeemable non-convertible debentures aggregating up to Rs 1,400 crore on private placement basis," L&T said in a regulatory filing. Shares of L&T were trading 1.32 per cent higher at Rs 1,331.10 apiece on BSE.

IIFL Finance to raise Rs 1,000 cr through bond issuance for business growth

The non-convertible debentures (NCDs) will offer up to 10.5 per cent yield

Why NCDs are better than bank FDs if you're looking for higher returns

Before investing in an NCD, check its credit rating, stick to those having a credit rating of AA+ or above

As many as 6 firms raised Rs 190 bn through debentures in April-July period

Over a dozen firms have announced plans to raise funds through NCDs

Improve your returns with NCDs

Invest in five-six issues to spread your risk and hold them for the entire tenure

Don't invest over 10% of your debt portfolio in an NCD issue

Retail investors seem to be buying non-convertible debentures (NCDs) aggressively. Recently, Muthoot Finance came up with an NCD issue of Rs 2,000 crore, which offered interest rate between 8.25 per cent and 9 per cent. The company had planned to keep it open for a month, but it was subscribed in a few days. Muthoot had kept 60 per cent of the issue for retail and high networth individuals."After the success of Muthoot Finance issue, more companies are in line to offer NCDs," says Ajay Manglunia, executive vice president and head of fixed income at Edelweiss Capital. Depending on the credit rating of the company, the interest rates are expected to be in the same range as Muthoot Finance. "The liquidity in the banking system and slower credit offtake would keep interest rates steady in the near future," says Manglunia.Unless investors understand the nuances of the business of the company offering NCD and the risks involved; they are better off investing in a fixed deposit or debt ...