IFCI Ltd NCD offer Tranche II Offer - Jan 2015 (Subscribe)

IFCI Ltd that came with its maiden NCD offer in the month of October/November 2014 with a base size of Rs. 250 crore and total issue with green shoe option for Rs. 2000 crore got Rs. 1215.47 crore (gross) is now coming with the balance fundraising issue with a base size of Rs. 250 crore with an option to retain over-subscription up to Residual shelf limit of Rs 790.813 crore.

Issue opens on 01.01.15 and will close on or before 04.02.15. Issue is lead managed by SBI Capital Markets Limited, A.K. Capital Services Limited, Edelweiss Financial Services Limited & RR Investors Capital Services Private Limited, and Karvy Computershare Private Limited is the registrar to the issue. Axis Trustee Services Ltd is the Debenture Trustee. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiples of 1 NCD thereon, thereafter. NCDs will be listed on BSE and NSE. Issue is rated as ICRA A (Stable); BWR AA- (Outlook - Stable) by respective rating agencies indicating adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk.

This issue has four series and tenure of 5 and 10 years with interest payment options of annual and on redemption basis as per the choice of investors. It offers interest rates ranging between 9.35% and 9.40% with an additional incentive of 0.10% for Series I and III giving an effective yield of 9.45% and 9.50%. Allotment is available in demat and physical mode but trading will take place in demat mode only.


Conclusion / Investment Strategy

As per recent reports, Government of India is allowed to raise its stake to 51%. Market is pinning hope for rate cut and FM is also recommending for rate cut by RBI. Considering all these, this issue is worth subscribing as inflation is expected to cool down below 5% from next year and GDP is expected to see 6% plus.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Dec 10, 2019

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).


About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The IFCI Ltd NCD January 2015 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if IFCI Ltd NCD January 2015 worth investing. The IFCI Ltd NCD January 2015 Note sets the NCD expectations in systematic way which tells you if IFCI Ltd NCD January 2015 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in IFCI Ltd NCD January 2015 by providing NCD recommendations i.e. subscribe, avoid and neutral.


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