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IFCI Ltd maiden NCD Offer - Oct 2014 (Apply)

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This is a public issue by the Company for an amount of Rs. 250.00 crore with an option to retain over subscription up to the Shelf Limit (i.e Rs. 2,000.00 crore). The Net Issue proceeds as raised through the Tranche- I Issue less the expenditure will be utilized for the purpose of lending/ repayment of loan: minimum 75% of the net amount raised and allotted in the Tranche- I Issue; and for General Corporate purpose: upto 25% of the net amount raised and allotted in the Tranche- I Issue. The unutilized amount if any will be used for purpose of lending/ repayment of loan.

Issue opens for subscription on 20.10.14 and will close on or before 21.11.14 depending on response. These NCDs have tenure of 5, 7 and 10 years and coupon rates ranging from 9.40% to 9.90% with an additional incentive of 0.10% to category III and IV (i.e. HNIs and Retail Investors) giving yield ranging between 9.90% to 10%. These NCDs has Monthly, Annual and Maturity value interest/payment mode.

Minimum application is to be made for 10 NCDs and in multiples of 1 thereon, thereafter. NCDs are available in demat as well as physical mode, however, trading will take place only for demat mode. Post allotment NCDs will be listed on BSE and NSE. The allotment will be made on 'First Come, First Served basis'.

This offer has been graded as BWR AA- (Stable) indicating the high degree of safety regarding timely servicing of financial obligations and such instruments carry very low credit risk, and ICRA A (Stable) indicating adequate degree of safety regarding timely servicing of financial obligations and such instruments carry low credit risk.

Issue is lead managed by SBI Capital Markets Ltd, A K Capital Services Ltd, Edelweiss Financial Services Ltd and RR Investors Capital Services Pvt Ltd. Karvy Computershare Pvt Ltd is the registrar to the issue and Axis Trustee Services Ltd is the Debenture Trustee.


Conclusion / Investment Strategy

As inflation has cooled down, rate cut is now round the corner. Hence this offer can be considered for long term investment.

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 October 2014 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 October 2014 worth investing. The IFCI Ltd NCD October 2014 Note sets the NCD expectations in systematic way which tells you if IFCI Ltd NCD October 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in IFCI Ltd NCD October 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.


2 Comments

2. Vikash frm London  Nov 6, 2014 14:18
i''m very surprise, how can anyone on the earth recommend this IFCI NCD .. it just gives coupon rates between 9.4 to 9.9% .. go for any other NCD from secondary market (or wait for one to come) - all are giving at least 12%. Also these NCDs are secured and quite trustable companies (e.g. Sriram transport) which has very low possiblity of failing (if you''re paranoid then go for GOI bonds at 8%).

So my recommndation with above logic - don''t subscribe to IIFL
1. Tarun Gupta  Oct 26, 2014 10:24
Apply srei and get 12% annual.
Avoid ifci due to less interest offered.