Indiabulls Commercial Credit Limited has issued secured redeemable non-convertible debentures (NCDs) on 11th September 2018. These NCDs will be available for subscription till the issue closure on 28th September. Subsequently, these Indiabulls NCDs will be listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) within 12 days of closure of the current issue. The base size of the current trache has been fixed at Rs. 1000 crores with the option of retaining oversubscription of up to an additional Rs. 1000 crores.
The NCDs will be issued only in dematerialized form, hence you will need a demat account to invest in these. The minimum number of NCDs you need to purchase is 10 NCDs of face value Rs. 1000 each. Thus the minimum initial investment required from a retail investor is Rs. 10,000. The NCDs issued will have tenures of 2 years, 3 years, 5 years and 10 years with the option of cumulative, monthly and annual interest payouts. In case you want to sell your NCDs before maturity, you can trade them on the NSE or BSE where they will be listed.
The following are the different NCDs series on offer from Indiabulls*:
|Tenor||2 years||3 years||3 years||5 years||5 years||10 years||10 years|
|Annual Coupon % Category I & II||NA||NA||8.80%||8.57%||8.90%||8.75%||9.10%|
|Annual Coupon % Category III & IV||NA||NA||8.90%||8.66%||9.00%||8.84%||9.20%|
|Effective Yield (% p.a.) Category I & II||8.70%||8.80%||8.79%||8.90%||8.90%||9.10%||9.09%|
|Effective Yield (% p.a.) Category III & IV||8.80%||8.90%||8.89%||9.00%||9.00%||9.20%||9.19%|
- Category I and II investors are institutional investors including various financial institutions, commercial banks, insurance companies, alternative investment funds, provident funds, SEBI registered mutual funds etc.
- Category III comprises of Resident Indians and Hindu Undivided Families (HUFs) who invest more than 10 lakh
- Category IV comprises of Resident Indians and HUFs who invest less than 10 lakh.
These Indiabulls NCDs have been rated CRISIL AAA; Outlook: Stable by CRISIL, while CARE Ratings has provided the rating of CARE AAA; Outlook: Stable. This is the highest rating available to corporate debt instruments in India and indicative of low credit risk to investors. In other words, the issuer, Indiabulls, has very low probability of defaulting on its financial commitments.
Additional Information regarding Indiabulls NCD Issue:
|NCD Type||Secured Redeemable NCD|
|Rating||CRISIL AAA, Outlook : Stable / CARE AAA, Outlook: Stable|
|Minimum Investment||Rs. 10,000|
|Face Value/Issue Price of each NCD||Rs. 1,000|
|NCD Issue Period||11th September to 28th September|
Tax on NCDs
Interest on NCDs is fully taxable at your slab rate. No TDS is deducted on maturity value of NCDs, provided they have been listed on the stock exchange. Indiabulls Commercial Credit Ltd. has proposed to list its NCDs on stock exchanges.
Date: 13 SEP 2018