Ratings

This Muthoot Finance NCD comes with a AA/Stable rating by CRISIL and AA/Stable rating by CARE.

This NCD issue will be listed in BSE with the depositories being CDSL and NSDL.  It is a must to have DEMAT account to buy this issue and to hold it.

The maximum interest rate that you can earn with this Muthoot NCD is 13.25% under non-cumulative option while you can ear up to 13.43% in cumulative option.

Issue Details

• Tenure – 24 months, 36 months, 60 months and 66 months
• Issue price and face value – Rs. 1000 per debenture
• Minimum application – Rs. 5000 and in multiples of one bond
• The coupon rate or interest rate that you can earn under annual payment of interest option is 13% (24 months) 13.25% (36 months and 60 months), while it would be 13.43% for cumulative option for 66 months.

If you are looking to invest in this issue of NCD then contact your nearest Karvy Office or contact your investment advisor.

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About Religare Finvest

• Net NPA of 0.02% till March 31, 2011
• Net worth Rs. 99,265 million
• Has around 27,000 customers
• Offers loans for SMEs via property, securities, assets, working capital, etc.

Issue Details

Now, Religare Finvest has come up with this non-convertible debentures (NCDs) with which it is planning to raise Rs. 400 crores with the option of additional Rs. 400 crore in case of over subscription.  The issue is open for subscription from September 9, 2011 and closes on September 26, 2011.  The NCD will be issued on a first come first serve basis and will be issued via the demat account and hence having a demat account to apply for this Religare NCD is a must.

Registrar and Lead Managers

The registrars and lead managers to this NCD issue are Link Intime and AK Capital Services, Yes Bank, Religare, and Axis Bank Limited

Ratings

This Religare NCD has been rated as ICRA AA- Stable by the ICRA rating company and CARE AA- by CARE.  Which means that it is relatively stable to invest via this non-convertible debenture issue.

Features

• Will be listed at Bombay Stock Exchange (BSE)
• No tax deduction at source (TDS) on the interest component
• Minimum investment amount is Rs. 10,000
• NRIs can buy this issue on a non-repatriable basis

Interest Rate

Each Religare Finvest NCD is worth Rs. 1000 and the minimum investment is 10 NCDs.  This issue comes with two options.

Option 1 – The interest rate for this option for 5 years is 12.50% which is the highest among all the recent NCDs.

Option 2 – The interest rate for this option is 12.25% for three years.

The interest will be paid on April 1st of each year and the final interest will be paid at the time of maturity.

Opinion

Looks like after a recent spate of NCDs like the Muthoot Finance NCD, Manappuram NCD, etc., this (Religare NCD) looks like the last issue of NCD at least the next month or two as there have not been any issue that has been pending in SEBI till now and hence if you have missed the above mentioned previous NCD issues then you can try this Religare issue due to the company’s stability, credibility and pan India presence and with the attractive interest of 12.50%.

How to Invest

You can subscribe to this NCD via your regular financial advisors or visiting the Religare Finvest website and downloading the application form or via the above mentioned registrars and lead managers.  Just fill in the application for the same with all your KYC details and most importantly your demat account details to get the credit of the NCD into your demat account which will be done after 1 to 2 months of application.

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About Muthoot Finance

• Around 3000 branches across India
• More than 70 years in service
• Gold loan AUM Rs. 15,728 crores
• Approximately 112 tons of gold and 47 lakhs loan accounts
• Around 99,000 share holders
• Large branch base among gold NBFC companies
• Net worth of Rs. 2400 crores with net profit Rs. 494 crores

NCD Issue Details

Muthoot Finance NCD issue is open on August 23, 2011 and closes on September 5, 2011.  The maximum interest rate that you can earn with this NCD is 12.25%.  These are secured and redeemable non-convertible debentures (NCDs) with a face value of Rs. 1000.  They are planning to raise Rs. 500 crores and an additional option of Rs. 500 crore in case of over subscription.  These secured debentures will be allotted on a first come first serve basis only.  Also you would need to have compulsorily have a DEMAT account to buy them but can apply either via the physical application form or via your trading account.

Ratings

Muthoot Finance NCD has been rated CRISIL AA-/Stable by Crisil and AA-Stable by ICRA which means relatively high degree of safety and timely service for all financial related obligations and it also comes with the low credit risk.

Interest Rates

Option 1 – 2 Years – 11.75% to 12%

Option 2 – 3 years – 12% to 12.25%

Option 3 – 5 years – 12% to 12.25%

The minimum subscription amount for this Muthood NCD is Rs. 5000 (you will get 5 NCDs with a face value of Rs. 1000 each).  The interest will be paid according to the option choosen.  These NCDs will be listed in both BSE and NSE.

Verdict

Since there has been a spate of NCDs recently, and if you have already brought the previous NCDs like the Shriram City NCD or Manappuram NCD or even the IIISL NCDs then it is not advisable to put all your money in one basket, i.e., in this case these non-convertible debenture issues, hence don’t go for this NCD issue from Muthoot Finance (only ifyou have already brought the previous ones, else can try it since the interest rate looks lucrative but go for the least period i.e., 2 years option as it is better in terms of interest rate as well as in terms of liquidity, etc.  You can download the application form here.

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Issue Details

This current Manappuram NCD is open on August 18, 2011 and closes on September 5, 2011.  The total issue size will be Rs. 750 crores.  The maximum coupon rate that you can earn with this NCD is 12.20% with effective yield of 12.56%.  NRIs and FIIs cannot apply for this issue.  The units will be issued on a first come first serve basis and Manapuram Finance has the option of closing it earlier than the last date if their target is met.  And I am very sure even this NCD will be over subscribed with a day or two of its opening considering and analyzing the previous two recent NCDs which got over subscribed with 24 hours to 48 hours or around.

Lead Mangers and Registrars

The lead managers for this NCD issue are Morgan Stanley, Axis Bank, AK Capital Services and ICICI Securities.  Co lead manager is Karvy Investor Services.  Link Intime is the registrar for this issue.

Important Features to Note

• Total AUMs of Rs. 63.8 billion
• 1.19 million customers
• Net NPA 0.11% (gold loan alone)
• Total of 2192 branches across India
• Credit History of 15 years

Depositories and Listing

This Manapuram Finance NCD will be listed in BSE and the depositories being CDSL & NSDL.

Ratings

CARE has issued a credit rating of CARE AA- and BWR has come up with a rating of BWR AA- for this NCD issue and it is not a great rating to go ahead and buy it though.

Holding Form

These Manappuram NCDs can be held only in the demat form and you cannot to hold in physical form, but can apply for them via the physical applications available at the lead managers and registrars or any other banks and investment centres in India.  If you don’t have a demat account, you will need to open one and then subscribe for this issue.

Interest Rate and Details

There are two options available to invest for the retail investors as well as for others.  Scheme I and Scheme II.

• Minimum application amount is Rs. 5000 for both schemes and in multiples of Rs. 5000 thereafter
• Face value and issue price being Rs. 1000
• Tenor for scheme I is 400 days and while for scheme II is 24 months
• Interest rate for 400 days – 12%
• Interest rate for 24 months – 12.20%

Manapuram has been promoting its gold loan business aggressively by way of various TV and other promotions by roping in the respective movie superstars in each of the zones like Venkatesh, Mohanlal, Vikram, Akshay Kumar, etc.  This goes to show they are on expansion mode and this NCD proves that fact right.  But never go for it on lure of such stars but go only after going through their prospectus very carefully.

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• Earn up to 12.10% p.a. with Shriram City NCD
• The IIFL NCD at 11.9% p.a. Fixed Interest

Shriram City is into auto finance, two wheeler finance, small enterprise finance, personal finance and gold loans.  They have been in this business for 25 years and actually started off with the Shriram Chits brand and slowly grown into Shriram City and Shriram Commercial Vehicle Finance now.  It used to be a south based company and now spread its wing across India.  Shriram City has registered a profit of around Rs. 241 crore which is a 45% growth from their overall business.

Issue Open and Closure

This NCD opens to general public from August 11, 2011 and closes on August 27, 2011.  This NCD from Sriram will be listed in both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).  The allotment of these debentures will be done on a first come first serve basis only.

Lead Managers and Co-Lead Managers

The lead managers to this Shriram City NCD are JM Financial, AK Capital Services, and ICICI Securities.  While the co-lead manager is Karvy and registrar is Integrated Enterprises.

Ratings

Shriram City NCD comes with the CARE AA rating by CARE and CRISIL AA-/Stable by CRISIL.

Features

• No tax deduction at source (TDS) on the interest component
• Fully tradable bonds via the stock market
• The minimum investment being Rs. 10,000 only

Interest Rates

There are two options available with this NCD (Series I & Series II)

Series I

The tenure for this series is 60 months with the interest rate being 12.10%.  The face value of Rs. 1000.  Put and call option at 48 months.  The payment of interest for this series is annual.

Series II

With this option the tenure is 36 months and the interest rate being 11.85%.  There is no call and put option available with this series.  The face value being Rs. 1000.  Even for this series the interest payable is annual.

You can buy this Shriram NCD via your online trading broker or via the physical mode by applying via the lead managers and registrars.  You would need to have a demat account to buy and hold these NCDs and without demat you cannot buy them as these non-convertible debentures will be listed in both NSE and BSE after the closure of the issue.

There is no doubt that even this NCD will be oversubscribed just like the IIFL NCD which enjoyed a royal treat in terms of subscription and was very much over subscribed.  Even this Shriram City NCD will be a success due to the fact that equities are performing in such a volatile way, most of us try to put up our money from them to such debt based components!

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• The IIFL NCD at 11.9% p.a. Fixed Interest

This secured NCD issue by India Infoline is open for general public from August 4, 2011 and the issue closes on August 12, 2011.  They are planning raise Rs. 375 crore with the option of retaining the over subscription amount up to Rs. 375 crores.  The fund raised via these secured non-convertible debenture will be used for their various financial usages.

Features

• This is an open public issue of the secured and redeemable NCDs.
• No tax deduction at source on the interest component
• These NCDs are tradable both at BSE and NSE

Rating

IIFL NCD comes with a rating of AA- (stable) by the ICRA credit rating service and AA- by the CARE ratings.

Lead Managers

The lead managers for this NCD issue are JM Financial Consultants, AK Capital and Axis Bank.

Interest Rate

The interest rate for the IIFL NCD has been fixed at 11.9% p.a. for 5 years.  The NCDs will be listed at the stock exchange to buy and sell them after the lock-in period.  The NCD units will be allotted on a first come first serve basis.  There will be a total of 3 investment options available for the retail investors to make use of as mentioned below

Option 1: This is an annual interest payment option the maturity date for this option will be 36 months and the coupon rate will be 11.7% p.a.  The interest component will be accumulated annually and be paid at end of the tenure.

Option 2: The NCDs brought under option II will be redeemed after 40 months at the rate of Rs. 1446.18 with an effective interest rate of 11.7% p.a.

Option 3: This option III is again an annual interest payment plan but the effective redemption or the maturity date will be 60 months from the allotment date.  The coupon rate under this option is 11.9% p.a.

Other Details

• The tradable lot will in the form of 1 NCD.
• The face value will be Rs. 1000
• The minimum application is Rs. 5000

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Ratings

Shriram Transport NCD comes with the CRISIL rating of AA/Stable and with the CARE rating of AA+.  Both for an amount of up to Rs. 1000 crores.

Demat

You will definitely need to have a DEMAT account to buy and sell these NCDs and will be listed in NSE.

No TDS

There is no TDS applicable for the investment made in these debentures.

Details

Highlights

The key highlight of this Shriram NCD is that these are secured and hence cannot be compared with that of the company fixed deposits.  Also there is no TDS deductible on the interest earned.  There is no cumulative option available as both of them pays out the interest annually.  Allotments will be on a first come first serve basis only.

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