Omaxe Ltd launches fixed deposit schemes with high interest rates
Omaxe Limited launches fixed deposit schemes for the period 6 months to 3 years period. In this article we would discuss abouts its details, whether to invest or not to invest
About Omaxe Limited
Omaxe Limited is into real estate business which focuses on Tier-2 and Tier-3 cities. It has presence in 12 states across 39 cities all over India. Currently it is doing 42 projects which includes integrated townships, commercial complex etc which values at Rs 18,600 crores.
Omaxe Ltd fixed deposit schemes
Omaxe Ltd has launched fixed deposit scheme to raise Rs 250 crores.
Minimum deposit – Rs 25,000 and Rs 1,000 multiples there of
Tenure: 6 months to 3 years period
Rate of interest (Interest paid at the end of maturity)
6 months – 11.50%
1 year – 12.00%
2 years – 12.25%
3 years – 12.50%
It is available in two options, Cumulative – Interest gets paid at maturity; Non-cumulative – Interest gets paid quarterly / annually
Reasons to invest in Omax fixed deposit scheme
- Generally company fixed deposit schemes offer high interest rates between 10% to 12%. Omaxe is offering 12% to 12.50% of interest per annum which is 3% to 3.5% above the bank fixed deposits.
- It has posted 62 crores profit (5% margin) after tax in last year (FY 2011-12). The net profit margin is consistent at 5% in Q2-FY13 (Quarter ending Sep-12)
Reasons not to invest
- All company fixed deposits are unsecured, hence they are high risk investments
- We cannot liquidate company fixed deposits when we need money
- Omaxe operates in real estate segment which carries high risk.
- As on Dec-2012, 57% of promoters shareholding have been pledged.
Recommendation: Though high interest rates are tempting, Omaxe is in real estate segment which is high risk. While other parameters like they are unsecured and they cannot be withdrawn when required are common among all company fixed deposits, considering the risk involved, you may stay away from such fixed deposits.
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Omaxe Ltd launches fixed deposit schemes
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