India Infoline Housing Finance Ltd – Part of India Infoline -IIFL Group have come up with issue of NCD in Dec 2013.Issue intends to raise Rs.250 crore and retain over subscription of Rs.250 crore aggregating to Rs.500 crore.
Company will utilize this capital for financing activities and working capital requirements.
Imp Dates:
- Issue open date: 12-12-2013.
- Issue close date:20-12-2013.
Interest rates:
| Issue tenure | 60 months |
| Coupon rate | 11.52 % Per Annum |
| Interest payment Frequency | Monthly
|
| Effective yield | 12.15% |
so one can view that issue structure is simple and offers only one option of 60 months period and monthly interest payment option with coupon rate of 11.52% per annum ..interest paid monthly.
These NCDs can be held in demat as well as physical mode.
Min subscription amount: Rs.10,000 or 10 NCDs
Security : Investors would have first pari-passu charge along with other secured creditors..IDBI trusteeship is the debenture trustee of this issue.
Listing : NCDs shall be listed on both BSE and NSE and can be sold in secondary market..if held in demat form but can’t guarantee about yield if done so.
Example of Monthly Income to be received:
| Rs. NCD subscribed | Coupon rate | Avg Monthly Interest Income* |
| Rs.10,00,00 (1 lakh) | 11.52% | Rs.980 |
This is avg monthly income expected if subscribed for Rs.10,00,00.
Rs.10,000 is the minimum subscription requirement.
This monthly income will start from the date of allotment and since it will be credited based on actual days count ..it may vary month to month basis.
The actual day count may vary because of variable no of days in particular month or public holiday on date of credit of interest income.
IIFL is a reputed group and investor can invest after understanding the risks associated with the housing finance.
