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320Ashish furia
It is correct that in the market there are different bond which will give you return more than 13% In the list of STFC there is bond known as double bond which on maturity will give you Rs 1000+R1000 The maturity date is 01/12/2016. When same was mention by me some one had commented that it is unsecured bond .It is correct that this is unsecured bond, but one must know following facts :
The STFC came out a public issue in june 2010 the issue size was Rs 250 cror plus permission to retain the over subscription of Rs 250 cror .Total Rs 500 cror was the issue size divided into the 5 different option and further each option divided into three category. Out of 5 option three option were secured one and two option were unsecured one. For two unsecured option one Rs 200cror were reserved. The issue was oversubscribed on first day and this particular option was subscribed by mostly HNIS and companies. The STFC is one of the oldest NBFC and having more than 25 years of track record ,The promoters are known as TATAs of south and balance sheet of STFC is of the order of Rs 30000(thirty thousand cror). Now in this situation if some one thinks that STFC will default on Rs 200 cror NCDs because these are unsecured is unsound thinking. It is also important to know that the unsecured portion of NCDs was rated by CARE as AA and By CRISIL as AA/Stable. It also relevant that STFC is one of the strongest candidate for new banking license .One can also draw the comfort from the fact that STFC is part of MSCI.The only problem is long wafting period and poor liquidity because these bond are held by strong hands. During last one year the trading volume has hardly on few days had touched four figure mark on NSE and three figure mark on BSE If one is willing to wait for five years then at present current prize 1070-1080 It will give yield more than 13% .