D.S.Kulkarni Developers Secured NCD-Aug-2014
Real Estate company, D.S.Kulkarni Developers is coming with Secured Non Convertible Debentures (NCD) offering 12.75% interest rates. D S Kulkarni Developers NCD would open for subscription today, i.e. 4th August, 2014. You can double your money in 66 months, i.e. 5 years 6 months. Annualised yield works out to be 13.5%. Should you invest in D S Kulkarni Developers NCD of August, 2014? What are the risks involved in it?
About D.S.Kulkarni Developers Limited
This is a real estate development and construction company primarily focussing on the development of residential units in the city of Pune with presence in Mumbai, Bengaluru, Nasik and New Jersey, USA. They construct and develop independent buildings consisting of flats, residential complexes, villas and apartments of varying sizes. They also develop and sell land plots, commercial space and retail outlets as an integral part of their residential projects.
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D S Kulkarni Developers NCD August, 2014
DS Kulkarni Developers is issuing 36 months, 66 months, 72 months and 84 months secured NCD’s. For Secured NCD the assets are backed up for principal and interest. In case something happens to the company and it gets closed, investors of NCD would still get their principal investment and interest. They would be given first preference compared to others. For these NCD’s security cover is in terms of land.
Features of D S Kulkarni Developers NCD August, 2014
- Start date: 4-August-2014
- End date: 26-August-2014
- NCD’s are available for 36 months, 66 months, 72 months and 84 months tenure.
- Interest payable monthly, quarterly, annually or at maturity depending on the series of NCD.
- Face value of bond is ₹ 5,000 for Option I, II and IV and ₹ 25,000 for Option III
- Minimum investment is ₹ 25,000 and maximum is ₹ 5 Lakhs. Additionally, you can invest in multiple of 1 bond.
- These NCD bonds would be listed in BSE. These are somewhat liquid investments provided buyers are available.
- NCD’s can be invested through Demat account or Physical form.
- Non-Resident Indians (NRI’s) cannot invest in these NCD’s.
- Senior Citizens and employees of D S Kulkarni Developers would get 0.25% higher interest rate compared to others.
- The issue size is ₹ 100 Crores with an option to retain ₹ 100 Crores aggregating to ₹ 200 Crores.
Detailed prospectus from SEBI website can be downloaded here (Draft version)
Below is the Interest rate chart
D S Kulkarni Developers Secured NCD – How the returns taxed?
- If the NCD’s are purchased through demat account, no TDS would be deducted by the company on the interest paid.
- If the NCD’s are purchased in physical form, TDS would be deducted if interest exceeds ₹ 5,000 as per tax guidelines.
- Income tax on interest would be based on individual tax slab. Means, irrespective of whether company deducts TDS or not, you should show the interest income on your income tax return and pay necessary income tax.
How the company is doing in terms of Financials?
- Revenues of the company have grown from ₹ 213.7 Crores (FY 2009-10) to ₹ 232.55 Crores (FY 2013-14) in the last 5 years
- Profits have declined from ₹ 21.78 Crores (FY 2009-10) to ₹ 13.05 Crores (FY 2013-14) in the last 5 years.
Also Read: Do you know that you can still file Income tax returns if you have missed for previous years?
Why to invest?
- Well known company in real estate sector. Its stocks are listed in NSE/BSE.
- Secured NCD protects your money. Means in case of anything happening to the company and it gets closed, investors of NCD would still get the principal and interest. Hence it is safe to invest in such secured NCD’s.
- Attractive interest rates of 12.75% for 84 months NCD. Highest annualised yield of 13.5%.
Why not to invest?
- D S Kulkarni Developers profits are in a declining trend. In future, if profits further decline, interest payment could be delayed.
- Companies in Real Estate are high risk as real estate price fluctuates.
- These NCD’s are rated as BBB+ by Care which indicates a moderate degree of safety in terms of timely servicing of financial obligations. There are other high rated NCD’s which you can invest.
Conclusion: D S Kulkarni Developers NCD’s of August, 2014 are secured. You can safely invest in such safe investment options and get high returns. Since these are traded on stock exchanges, these are liquid investments too. You can invest in such secured NCD’s considering moderate credit rating and other negative points indicated.
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Suresh
D S Kulkarni Developers Secured NCD-Aug-2014
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We have invested for 20 bond each of Rs.5000/- I.e. Rs.1,00,000/- since June 17 no monthly interest.. received..the ncd are secured but we fill our money is insecure with dsk..please guide us what action can do to company
I recd the 3 years bonds on 6.9.14. They were supposed to mature on 6.9.17. So when and how will i get the money. Is i invested 1lakh , will i get back 1 lakh now as i had chosn quarterly interest payout?
I INVEST 100000.00/- 2014 MY NCD EXPIR ON 28/10/17 THEN MY INVESTMENT BACK PLUS INTREST
as NCD price went down what will be impact on investor who already did and will get invested money back on 6 sept 2017.
whether investor will get money back @5000 per each
Ncd market value for 12.75% bonds has dropped to around Rs 3200/unit from face value of 5000.Are there any chances price reviving?
Risk to stay invested? I can hold or exit from 12.75% bond
CAN HOLD. SEE THE BALANCE SHEET FOR FOR EACH QUATER. IF THE PROFIT TURNES IN TO LOSS THEN PLAN TO EXIT WITH IN 6 TO 9 MONTHS
I WISH TO INVEST AT THE FALLEN PRICE OF DEBENTURES. HOW SAFE IT IS? WILL I GET MY INVESTMENT BACK PLUS INTEREST AS DECLARED IN THE ISSUANCE NOTICE.?
RISK? PRICE HAS FALLEN DUE TO THE RISK INVOLVED IN INVESTMENT.
Hi Suresh,
I have invested in this NCD and I have been getting the interest on the 1st of each month till May 2017. However, I have not received the interest in June 2017. The value of the NCD has fallen by about 15% from 5000 (Face Value) to 4250. The share price of DS Kulkarni has been falling (lower circuit) since last few days. I am not sure if these events are related. Whatare the next steps that as an investor I should take? What is the worst that can happen to my investment? These NCDs are secured.
Hi Krishna, Since these NCDs are secured, you would have less risk. You would definitely get your capital + interest back. You can wait for a month and then file complaint at company affairs, ministry of finance with the details
I wish to know the Code no of DS Kulkarni’s NCD Issue, How I could get it ?
I want to invest in D’S kulkarni ncd 1.5L .is it safe.which option is best in term of obtaining the interest. Tell me about lock in period of this ncd which minimise the risk more
dear sir,
without a demat account for investments, just like "d s kulkarni", are there any other good companies that provide monthly or even quarterly interest payouts, without any lockin periods? if so, do provide me details, or atleast their websites, so that i can find out for myself. request you to please keep this communication as private as possible.
thanks and regards
leslie dsouza.
Leslie, No. These are NCD bonds where they would be paid at maturity. However you can sell them on stock exchange if there are buyers onthat day. You asked a general question and I don’t think there is any private communication required
Hi Suresh,
Reading your blog and seems you might be the right person to help me creating a investment portfolio.
I am an NRI and looking for investment oppurtunity partially which i would like to repatriate back to UK at some point.
Can you advise.
Currently I donot have an demat account and a process would be appreciated.
Thanks
Manish
Pls refer this artice which would answer some of your queries. https://myinvestmentideas.com/2013/02/best-investment-options-for-nris-in-india-now/
hello suresh, (1) this time i see that birla sl short term fund growth is ranked-2 by crisil but this same fund in direct that is birla sl short term fund direct growth is not ranked , i cannot understand it that both fund investment in different companies are same still it is not ranked, whats the reason, and can i invest in this direct fund instead not ranked by crisil. (2) birla sl treasury optimizer fund direct growth is good for investment or not, this is not crisil ranked fund, thank u
Hi Suresh,
which one is best one shriram transport finance ncd 2014 or d.s kulakarani developer secure ncd.could you please suggest me for 5 years investment.
I prefer Shriram Transport NCD among two
Can a Individual opt for Option IV. what is the process to invest if I don;t have Demat account.
Thanks
Prasanta
Yes, provided you are looking for monthly interest. You can go for manual paper option by downloading this from the links I have given
Sir,
I want to invest in this NCD but this is not highlighted in the ICICI Direct Demat Account.
can you comfirm me where i have to go for this investment in the form of Demat.?
regards
sagar sehgal
It would be highlighted from the date of opening of subscription
Thank u for the article. I am planning to invest in this 25k, kindly suggest me the term. I am invetingbthis money for my child education purpose, like every year I will invest this kind fd for my child primary education purpose.
Invest in these funds. If you are medium risk taker, remove point no.2 recommended funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund.