Should you invest in IVRCL FD Scheme where yield is15.07% ?

Should you invest in IVRCL FD Scheme where yield is 15.07Should you invest in IVRCL FD Scheme where yield is 15.07% ?

IVRCL, an infrastructure and construction company has come up with Fixed Deposit scheme wherein it indicates that you would get yield of 15.07% per annum. Thought IVRCL FD Scheme looks attract on face of it, just read this analysis before you invest it. Last week one of the reader Ravikumar Nama indicated that after long time he has seen that I was recommending a SME IPO to subscribe. There are several new investment products, mutual funds or IPO’s keep coming in market, while it is important to know the good investment products, it is equally important that we should not invest in bad investments and ruin our money. Hence I keep analyzing new investment products, IPO’s etc. whether they are good or bad. Read this article to know more facts about IVRCL FD Scheme and whether you should invest in it or not.


IVRCL is one of the leading engineering, procurement and construction company in India. It has executed large number of projects in India.

Also read: 8 alternatives to Personal Loans

Features of IVRCL FD scheme

  • IVRCL FD scheme is available in Cumulative scheme and non cumulative scheme.
  • For non-cumulative scheme, Interest is compounded monthly and payable quarterly.
  • For cumulative scheme, interest is compounded monthly and payable at maturity.
  • Minimum FD amount is Rs 25,000 and any amount in multiples of Rs 1,000 beyond this.
  • Deposits available for 1, 2 and 3 years tenure.
  • ECS facility available for payment of interest on non-cumulative deposits.
  • Premature withdrawal facility as per guidelines
  • Nomination facility available

Interest Chart is enclosed below

IVRCL FD Scheme-Interest chart

How to apply for IVRCL FD Scheme

  • You can apply through any of the IDBI or its subsidiaries or through any brokers like ICICI Direct, etc.
  • You can also directly apply by downloading the application form and preparing the cheque in favor of “IVRCL Limited-Fixed Deposit” and depositing at collection centers indicated in the application.
  • Application form can be downloaded here:

IVRCL Financials

  • IVRCL revenues have grown from Rs 63,475 Million (15 months ended Jun-2012) to Rs 38,295 Million (9 months ended Mar-2013). Since the performance is not annualized, these two are not comparable.
  • IVRCL has posted a net profit Rs 180.81 Millions (15 months ended Jun-2012) and loss Rs 1,016.61 Millions (9 months ended Mar-2013).

Why to invest?

  • High interest rates. Yield comes to 15.07% per annum.

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Why not to invest

  • Company declared loss for 9 months ended Mar-2013 for Rs 1,016.61 Million. Such high interest rate FD schemes would increase the burden for the company and the operating cost would still increase.
  • Zero dividends declared in last 2 years. Means a share holder who has invested in this company has not received any dividends. Dividends indicate the strength of the company. High dividend paying companies are most trustworthy and vice-versa.
  • Unsecured FD scheme. In case of any unforeseen thing happening to company, FD scheme investors would get less priority on repayment of the amounts.

Conclusion: Like I indicated earlier, while I am interested to grow my money at faster pace, I am equally interested in protecting my money. While such companies would have been performing well in the past, in the current scenario considering all such negative points, investors should be little cautious before investing in such companies.

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Suresh KP


    1. Hi Shiv, All corporate FDs comes with risk. My suggestion is to go for Secured NCD so that your money is safe. Secured NCD’s keep coming now and then like Shriram Secured NCD which came in Sep-13. 

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