360 ONE Prime (Formerly IIFL Wealth Prime) coming up with Tranche II secured NCD bonds now. These bonds would open for subscription on 24th May, 2024. 360 ONE Prime is an asset management company that offers portfolio, wealth management and other related services in India. The NCD interest rates for 360 ONE Prime NCD are up to 9.85%. These NCDs are offered for 18, 24, 36, 60 and 120 month tenure. Interest is paid either monthly or yearly. Should you invest in 360 ONE Prime NCD May-2024? What are the risk factors one should consider before investing in 360 ONE Prime Tranche II NCD’s of 2024?
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About 360 ONE Prime Limited
Incorporated in 1994, 360 ONE Prime Limited is an asset management firm that offers portfolio and wealth management, treasury, consulting, financial planning, and investment supervisory services. It’s a subsidiary of 360 ONE WAM.
360 ONE Prime NCD May-2024 – Issue Details
Here are the issue details.
| Subscription opening Date | 24-May-24 |
| Subscription closure Date | 06-Jun-24 |
| Issuing Security Name | 360 ONE Prime Limited (formerly IIFL Wealth Prime Limited) |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Issue Size (Base) | Rs 100 Crores |
| Issue Size (Option to retain over subscription) | Rs 400 Crores |
| Total issue size | Rs 1,000 Crores |
| Issue price | Rs 1,000 per bond |
| Face value | Rs 1,000 per bond |
| Series | I to X |
| Minimum Lot size | 10 bonds and 1 bond there after |
| Tenure | 18, 24, 36, 60 and 120 months |
| Interest Payment frequency | Monthly and Annually |
| Listing on | Within 6 working days on BSE/NSE |
| Lead Manager | Trust Investment Advisors Private Limited A.K. Capital Services Limited Iifl Securities Ltd |
| Debenture Trustee/s | Beacon Trusteeship Limited |
360 ONE Prime NCD May-2024 – Interest Rates
| Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Annual | Monthly | Annual | Monthly | Annual | Monthly | Annual | Monthly | Annual |
| Tenure (months) | 18 | 18 | 24 | 24 | 36 | 36 | 60 | 60 | 120 | 120 |
| Coupon (% per Annum) | 8.86% | 9.16% | 8.98% | 9.35% | 9.16% | 9.55% | 9.21% | 9.60% | 9.44% | 9.85% |
| Effective Yield (% per Annum) | 9.22% | 9.23% | 9.36% | 9.35% | 9.55% | 9.55% | 9.60% | 9.60% | 9.86% | 9.84% |
| Amount on Maturity (In Rs.) | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 |
What are the credit ratings for these NCDs?
These NCDs are rated as CRISIL AA/Stable by CRISIL ratings and ICRA AA (Stable) by ICRA. Instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.
How is the company doing in terms of profits?
Its profits are as below:
- FY2022 – Rs 282.8 Crores
- FY2023 – Rs 234.5 Crores
- FY2024 – Rs 273.6 Crores
360 ONE Prime NCD May-2024 – Why to invest?
- These NCDs offer attractive interest rates where investors can get interest up to 9.85% per annum.
- It issues secured NCDs. Its secured NCDs are safe compared to unsecured NCDs. In case a company gets wind-up/shut down for some reason, secured NCD investors would get preference in repayment of capital along with interest as those backed up by assets of the company. Hence it is safe to invest in such secured NCD options.
360 ONE Prime NCD May-2024 – Why not to invest?
- High Customer defaults can pose a significant risk to business and financial stability.
- Loans against securities add risk, especially during market downturns.
- Timely recovery of unsecured loans is crucial for operational and financial health.
- Credit rating downgrade may increase interest rates, impacting future borrowing of the company
- Interest rate volatility exposes them to potential mismatches, posing liquidity challenges.
- Refer 360 ONE Prime NCD May-2024 issue prospectus for complete risk factors.
How to invest in 360 ONE Prime NCD May-2024 Online?
This issue is available in only in demat form. You can apply online or through any of the broker website where you are maintaining a demat account. Application forms can be downloaded on the lead manager web site. For more information on this you can refer prospectus.
Is 360 ONE Prime NCD May-2024 Safe?
These NCD bonds are rated as AA Stable by CRISIL Ratings and ICRA. Such credit rating carry low credit risk.
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360 ONE Prime NCD May-2024 – Should you invest?
These NCDs comes with both risks and rewards.
360 ONE Prime NCD May-2024 issue offers high interest rates. These NCDs are rated as AA Stable by CRISIL Ratings and ICRA, which are considered as good. Since these are secured NCDs, these are safe investments.
On the other side, company ratings can change in future without any advance intimation. Investors should not forget about some of the NBFC companies delaying the interest as well principal re-payments in the past.
High risk investors can invest in these NCDs for short term to medium term.
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Under secured ncd please include the following sentence however there is no guarantee that you will get back the entire investment if the company winds up through ibc.
Hello Sir
with due respect, even if you invested in Fixed deposit in Nationalized so called Government Bank, you will get max of 5L if bank go for bankruptcy from DICGC for each individual account. There is always associated risk if you are investing in any mode
Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly-owned subsidiary of the Reserve Bank of India (RBI). It provides deposit insurance that works as a protection cover for bank deposit holders when the bank fails to pay its depositors.