5 Upcoming NCDs in India in Jan-Feb-March-2019

Upcoming NCDs in India in Jan-Feb-March-2019Upcoming NCDs in India in Jan-Feb-March-2019


There are flood of Non Convertible Debentures (NCDs) that are lined up now in 2019. While there are secured NCDs being issued, some companies are issuing Unsecured NCDs too. There are NCDs that are providing up to 10.5% interest rates, which are tempting investors to apply so that they can get fixed and regular income. Investors need to be very careful now owing to several companies going on default mode now in India. source url Which are the upcoming NCDs in India in Jan/Feb/March-2019. What are the interest rates expected from these NCDs? Should you invest in these upcoming NCDs now in 2019?

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What are Non Convertible Debenture (NCD) Bonds?


If you want to more about NCD bonds, you can view this video.

5 Upcoming NCDs in India in Jan-Feb-March-2019


Here are the list of upcoming NCD Bonds in India in Jan/Feb/March-2019.

#1 – Manappuram Finance Secured NCD in Jan-2019


Recently Manappuram Finance has got approvals for issue of NCDs.

The issue would open for subscription from 28th January, 2019.

The issue would close on 27th February, 2019. However, if it is oversubscribed, it would get closer before the end date.

Manappuram Finance has come up with secured NCDs. Since it offers secured NCDs, in case of nonperformance by the company and the company get windup, investors of secured NCDs would get preference in repayment of capital. Hence, these NCDs are relatively safer compared to unsecured NCDs.

Interest rates are ranging between 9.35% to 10.15%.

It has come up with 7 options in NCDs and tenure ranging between 36 months, 70 months and 2,617 days (86 months).

These NCD’s are rated as CARE AA/Stable by CARE Ratings and BWR AA+ Stable by Brickwork Ratings.

The current Tranche II issue size Rs 150 Crores with an option to retain another Rs 587 Crores totaling to Rs 737 Crores.

The NCDs are proposed to be listed on BSE. The NCDs shall be listed within 6 Working Days from the date of the Issue Closure.

Edelweiss Financial Services and AK Capital Services are the Lead managers to the issue.

You can go site review the Manappuram NCDs of Jan 2019 here.

#2 – Magma Fincorp NCD in Feb-2019


Magma Fincorp Limited has filed a draft prospectus on 15th January, 2019

The issue would open for subscription in Feb-2019. The exact date is yet to be known.

The issue would close within 1 month from the date of issue. However, if it is oversubscribed, it would get closer before the indicated end date.

Magma Fincorp is coming up with secured NCDs. Since it offers secured NCDs, in case of nonperformance by the company and the company get windup, investors of secured NCDs would get preference in repayment of capital. Hence, these NCDs are relatively safer compared to unsecured NCDs.

Interest rates are ranging between 9% to 10.5% per annum.

Details of tenure of NCDs are yet to be known.

These NCD’s are rated as ACUITEE AA/Stable by Acuitee Ratings and BWR AA Stable by Brickwork Ratings. The rating of the NCDs by Brickworks and Acuité indicate that instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

The total issue size Rs 1,000 Crores. However, it can issue them in various tranches (lots).

The NCDs are proposed to be listed on BSE and NSE. The NCDs shall be listed within 6 Working Days from the date of the Issue Closure.

Edelweiss Financial Services and AK Capital Services are the Lead managers to the issue.

watch #3 – L&T Finance NCD in Feb/March-2019


Magma Fincorp Limited has filed a draft prospectus on 17th January, 2019

The issue would open for subscription in Feb-2019/Mar-2019. The exact date is yet to be known.

The issue would close within 1 month from the date of issue. However, if it is oversubscribed, it would get closer before the indicated end date.

L&T Finance is coming up with secured NCDs and unsecured NCDs. Since it offers secured NCDs, in case of nonperformance by the company and the company get windup, investors of secured NCDs would get preference in repayment of capital. Hence, these NCDs are relatively safer compared to unsecured NCDs.

Interest rates are expected to be in the range of 10% to 10.5% per annum.

Details of tenure of NCDs are yet to be known.

These NCD’s are rated as AAA / Stable by ICRA, ICRA and BWR Ratings. The rating of NCDs by ICRA, CARE and India Ratings indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations and carry lowest credit risk.

The total issue size Rs 5,000 Crores. However, it can issue them in various tranches (lots).

The NCDs are proposed to be listed on BSE and NSE. The NCDs shall be listed within 6 Working Days from the date of the Issue Closure.

Edelweiss Financial Services, AK Capital Services and Trust Advisors are the Lead managers to the issue.

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#4 – Indiabulls Commercial Credit NCD in Feb/March-2019


Indiabulls Commercial Credit Limited has filed a draft prospectus on 18th January, 2019 for issuing NCDs.

The issue would open for subscription in Feb-2019/Mar-2019. The exact date is yet to be known.

The issue would close within 1 month from the date of issue. However, if it is oversubscribed, it would get closer before the indicated end date.

Indiabulls Commercial Credit is coming up with secured NCDs and unsecured NCDs. Since it offers secured NCDs, in case of nonperformance by the company and the company get windup, investors of secured NCDs would get preference in repayment of capital. Hence, these NCDs are relatively safer compared to unsecured NCDs.

Interest rates are expected to be in the range of 9% to 10.5% per annum.

Details of tenure of NCDs are yet to be known.

These NCD’s are rated as AAA / Stable by CRISIL and CARE. The rating of NCDs by CRISIL and CARE indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk.

The total issue size Rs 3,000 Crores for Secured NCDs and Rs 500 Crores for unsecured NCDs totaling to 5,000 Crores. However, it can issue them in various tranches (lots).

The NCDs are proposed to be listed on BSE and NSE. The NCDs shall be listed within 6 Working Days from the date of the Issue Closure.

Edelweiss Financial Services, AK Capital Services, Axis Bank and Trust Advisors are the Lead managers to the issue.

#5 – Indiabulls Consumer Finance NCD in Feb/Mar-19


Indiabulls Consumer Finance Limited has filed a draft prospectus on 21st  January, 2019 for issuing NCDs.

The issue would open for subscription in Feb-2019/Mar-2019. The exact date is yet to be known.

The issue would close within 1 month from the date of issue. However, if it is oversubscribed, it would get closer before the indicated end date.

Indiabulls Consumer Finance is coming up with secured NCDs. Since it offers secured NCDs, in case of nonperformance by the company and the company get windup, investors of secured NCDs would get preference in repayment of capital. Hence, these NCDs are relatively safer compared to unsecured NCDs.

Its earlier NCD issued in Mar-2018 for 1 year tenure had 8.5% interest rates. However, depending on the tenure, the interest range could be 9% to 10.5% per annum.

Details of tenure of NCDs are yet to be known.

These NCD’s are rated as AA / Stable by CARE and BWR AA+/ Stable by Brickwork Ratings. These instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.

The total issue size Rs 300 Crores. However, it can issue them in various tranches (lots).

The NCDs are proposed to be listed on BSE and NSE. The NCDs shall be listed within 6 Working Days from the date of the Issue Closure.

Edelweiss Financial Services, AK Capital Services, Axis Bank and Trust Advisors are the Lead managers to the issue.

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Should you invest in these upcoming NCDs in Jan/Feb/March-2019?


You need to ask a few things before investing in such NCDs

1) Investing in NCD’s would be high risk, especially when finance companies are facing a liquidity crunch. Do you want to invest in such NCD’s then?

2) These NCD’s being offered are for 3 years, 5 years, 7 years and 10 years tenure. Do you want to park your money in high risk NCD for long term of 5 to 10 years? Parking money in high risk options for longer time is not advisable as no one can predict what happens to companies in the long term. You can look for investing in 3 years secured NCDs as these are for short term and they are secured in nature. 

3)  If you are a high risk taker, investing in the secured NCDs that give 8%+ returns may be one of the best investment options.

4) Some of the company NPAs are very high. In future there could be delays in payment of interest if they start writing off money and their profits shrink. Are you okay with this?

5) There are series of scams and liquidity issues in the last 6-9 months. Take PNB Scam or IL&FS Scam.  Even 3 days back, Zee Entertainment / Essel group head accepted that there is liquidity crunch and there could be a delay in payments to vendors and to mutual fund schemes which invested in their company instruments.

What do you think about investing in upcoming NCDs of Jan/Feb/March-2019 then?

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Suresh

5 Upcoming NCDs in India in Jan-Feb-March-2019

13 comments

  • senthilkumar R

    i was bought ncds from secondry market. i bought on 25th jan 2019, monthly coupen. but the interest credited only for feb month. let me know the reason ? kindly share the calculation method for monthly and yearly coupen bought from secondry market

    • Hi Senthil, it would depend on the cut-off time. You can check with customer care of this concerned company with whom you purchased NCD they should be able to tell you.

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