Markets
BSE See NSE See 39,101.09
140.30 (0.36%)
collapse Related Readings collapse

Financing The Financer

| 9/20/2012 9:00 PM Thursday

Fresh in the recent spate of corporate fund raising initiatives, the Muthoot Finance and Religare Finvest NCDs are offering investors attractive coupon rates and terms. Vidrum Mehta tells investors whether to invest in these.

Non-Convertible Debentures (NCDs) seem to be in vogue of late. And why not, when on one hand investors get an attractive coupon rate, and on the other, companies are able to raise funds easily even in an uncertain
environment. Investors usually get a coupon rate that is 200-300 basis points higher than those that regular fixed deposits in banks yield. Further, in the current higher interest rate scenario, these NCDs offer a very attractive rate, which tempts investors to park at least a portion of their portfolio in them.

This is evident from the fact that the recent NCD issues are receiving a very encouraging response from investors. In a short span of 15-20 days, around four to five companies have tapped the market to raise funds through the NCD route. These companies will raise approximately around Rs 2150 crore in funds in a short span of around one month.

This spate of NCDs was kick-started by India Infoline Finance (IIFL) through its NCD issue on 5th September 2012. The issue received an overwhelming response from investors and was oversubscribed by approximately 2.36x. Soon after came the Shriram City Union Finance NCD issue on 12th September, 2012 (at the time of writing this article, it was subscribed by 0.89x). We had carried analyses of these two NCD issues (available on our website www.dsij.in). Going ahead, SREI Infrastructure Finance is also raising funds through the NCD route.

At present, there are two companies that are tapping the market with their NCD issues, viz. Muthoot Finance and Religare Finvest. Are they worth investing in or should investors give them a miss? Here is a detailed analysis of the two issues that would help our readers.

 

Find More Articles on: DSIJ Magazine, New Issue Analysis, Stock Recommendations, Corporate Actions (Rights Issue, NCD), Product, Large Cap

«« First « Previous |1 2 3 4 | Last ››
news letter

More for the early bird.

Get the post-market reports and breakfast news right in your inbox. See latest »

DSIJ Mindshare

12345678910Last

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Tiger Logistics topline to grow by 10%--buoyant over infra sector status to logistics sector

Logistics sector will play a vital role in making the concept of ‘Make in India’ a success. This will be further aided by some of the recent steps taken by Government of India such as granting of infra sector status to logistics sector.

Best and worst Performing Sector Funds of Year 2017

Best and worst Performing Sector Funds of Year 2017

As the year-end has approached most of you are eager to know the mutual fund movers and shakers of the year 2017. Read on to find the performance of various sector dedicated funds.

Markets may start positive, but volatility likely due to F&O expiry

Markets may start positive, but volatility likely due to F&O expiry

The start of the F&O expiry day is likely to be in the green, but volatility may creep in with the progress of the session. The SGX Nifty suggests that the Nifty could open at 10,525 with gains of 32 points at the opening bell. 

Pidilite announces buyback of Rs 500 crore

Pidilite announces buyback of Rs 500 crore

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company.

Bank Nifty drags markets to close in the red

Bank Nifty drags markets to close in the red

The late session fall in Bank Nifty changed the direction of the market, leading to a marginal fall in the benchmark indices. Bank Nifty yet again resisted at its multiple point downward sloping trendline level at 25733.

Six major underperforming MF schemes having higher expense ratios

Six major underperforming MF schemes having higher expense ratios

Mutual funds with a large size of assets under management (AUMs) are supposed to have lower expense ratios. However, there are schemes with large AUMs but having higher expense ratios and generating lower returns. 

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma supports market; Sun Pharma at bullish reversal

Nifty Pharma index has come in as the healer in an otherwise sluggish market. Index has given a consolidation breakout at the 9420 level today and if the it sustains 9420, followed by 9628 on the upside, it has a long way to go.

Ten stocks close to their 52-week low

Ten stocks close to their 52-week low

Following stocks are close to their 52-week low as at 12.35 p.m. on December 27.

Ten stocks close to their 52-week high

Ten stocks close to their 52-week high

The markets on December 27 opened gap down. BSE Sensex is trading at 34,068.15, up by 57.54 points and the Nifty is trading at 10,539.45, up by 7.95 points.

Five stocks with selling interest

Five stocks with selling interest

Overall volumes in futures & options currently stand at 62.75 lakh contracts with a turnover of Rs. 5,19,204.72 crore.