Friday, 7 September 2012

India Infoline Finace Ltd. NCD (IIFL NCD) Pays 12.75%

IIFL Non Convertible DebeturesIndia Infoline Finace Issues Non Convertible Debebtures (IIFL NCD) with an interest of 12.75% per annum. The Amount you invested in this NCD will be doubled in 6 years. The Issue of the NCD is already started on 5th September, 2012 and the issue will be closed on 18th September, 2012.

Peculiarities of India Info line Finance NCD 

(1) Will be doubled in 6 years,

(2) 13.52% effective earnings for monthly option

(3) There are three options for the bond, ie, Cumulative, Monthly and annual interest payment.

(4) The IIFL NCDs are tradable in listed Stock Markets after the Lock in period of 6 years.

(5) There is no TDS (Tax Deducted at Source) for this NCD.

(6) CRISIL Rating is CRISIL AA-(Stable) & ICRA rating is ICRA AA- (Stable)

(7) High Degree of Safety and Low credit risk as per Ratings of Rating Agencies.

(8) Face value of one NCD is Rs. 1000

(9) Minimum Order Quantity is 5 NCDs (Total Rs, 5000)

(10) Three options are available.

(a) Option – I - Monthly interest payment @ 12.75% p.a and will be redeemed in 72 months (6 years) from the date of allotment.

(b) Option – II- Annual Interest Payment @ 12.75% p.a and will be redeemed in 72 months (6 years) from the date of allotment.

(c) Option – III- The interest will be cumulated and will be paid Rs. 2054 at the end of the Lock in period of 6 years.

Advantages of the NCD

Good rate of interest of 12.75% and monthly option gives you an effective rate of interest of 13.52% p.a

High safety investment.

Low risk level

Disadvantages of IIFL NCD

6 years lock in period.

The Bond is not issued by IIFL but India Infoline Finance Ltd a subsidiary of IIFL.

If the investor can afford 6 years lock in period this Non Convertible debenture is a good investment option for low risk bearing investors.

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