Introduction to 360 ONE Prime NCD – Jan-2024
360 ONE Prime (Formerly IIFL Wealth Prime) coming up with Tranche I secured NCD bonds now. These bonds would open for subscription on 11th January, 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 9.66%. These NCDs are offered for 18, 24, 36 and 60 month tenure. Interest is paid either monthly or yearly. Should you invest in 360 ONE Prime NCD issue of January, 2024? What are the risk factors one should consider before investing in 360 ONE Prime Tranche I NCD’s of 2024?
Also Read: Edelweiss Financial Services NCD Jan-24 offers 10.45% interest rate
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 – Jan-2024 – Issue Details
Here are the issue details.
| Subscription opening Date | 11-Jan-24 |
| Subscription closure Date | 24-Jan-24 |
| Issuing Security Name | 360 ONE Prime Limited (formerlyknown as IIFL Wealth Prime Limited) |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Issue Size (Base) | Rs 200 Crores |
| Issue Size (Option to retain over subscription) | Rs 800 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 VIII |
| Minimum Lot size | 10 bonds and 1 bond there after |
| Tenure | 18, 24, 36 and 60 months |
| Interest Payment frequency | Monthly and Annually |
| Listing on | Within 6 working days on BSE/NSE |
| Lead Manager | Jm Financial Limited A.K. Capital Services Limited Iifl Securities Ltd |
| Debenture Trustee/s | Beacon Trusteeship Limited |
360 ONE Prime NCD – Jan-2024 – Interest Rates
| Series | I | II | III | IV | V | VI | VII | VIII |
|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Annual | Monthly | Annual | Monthly | Annual | Monthly | Annual |
| Tenure (months) | 18 | 18 | 24 | 24 | 36 | 36 | 60 | 60 |
| Coupon (% per Annum) | 8.91% | 9.22% | 9.03% | 9.41% | 9.21% | 9.61% | 9.26% | 9.66% |
| Effective Yield (% per Annum) | 9.26% | 9.27% | 9.40% | 9.40% | 9.60% | 9.60% | 9.65% | 9.65% |
| 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 |
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
360 ONE Prime NCD – Jan-2024 – Why to invest?
- These NCDs offer attractive interest rates where investors can get interest up to 9.66% 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 – Jan-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 Jan-2024 issue prospectus for complete risk factors.
How to invest in 360 ONE Prime NCD 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 Safe?
These NCD bonds are rated as AA Stable by CRISIL Ratings and ICRA. Such credit rating carry low credit risk.
Also Read: Muthoot Finance NCD Jan-23 issue offers 9% interest rates
360 ONE Prime NCD – Jan-2024 – Should you invest?
These NCDs comes with both risks and rewards.
- 360 ONE Prime NCD of Jan-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 revenues and margins have declined in the last 2 years. 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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Do they offer additional incentive for “existing bondholders/shareholders” and/or senior citizens as offered by Indiabulls Housing Finance Ltd.
No Kamalji.