JM Financial Products NCD with an interest of 8.3%; Who should consider?

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Details of the NCD tranche

The first issue of Tranche I will be released on September 23, 2021 and close on October 14, 2021. NTMs are proposed to be listed on the ESB

The Tranche I issue consists of four series, the first of which comes with a variable rate option and has a term of 39 months. Series I has a variable interest rate based on the 3-month Treasury Bill rate from Financial Benchmarks India Pvt Ltd (FBIL) plus a margin of 3.15%. The coupon for Series I CRSs will be determined by the movement in the Treasury bill rate.

In addition, Series II, III and IV offer fixed interest rate options with terms of 60 months (annual), 60 months (monthly) and 100 months (year). Series II, III and III NCDs (Fixed Interest Rate) have effective annual returns ranging from 8.19% to 8.30%. For NCDs of series II, III and IV, the Tranche I issue offers subscription options with coupon rates ranging from 7.91% to 8.30% each year (fixed interest rate).

Details of the NCD Series 1 tranche

Details of the NCD Series 1 tranche

Transmitter JM Financial Products Limited
Nature of the instrument Guaranteed listed listed non-convertible debentures
Issue opening date September 23, 2021
Issue closing date October 14, 2021
Credit rating AA / Stable rating – ICRA, Crisil Ratings
Fixed coupon rate Up to 8.30% per year
Tenor 39 months to 100 months *
Size of the problem Rs 1000 Crores
Issue price 1000 rupees per MNT
Minimum demand Rs 10.00
Credit ratings for these NTMs

Credit ratings for these NTMs

ICRA and Crisil Ratings have assigned these MNTs an AA / Stable rating. This rating reflects a high level of security in terms of meeting financial commitments on time.

The money collected through this issue of Tranche I will be used for subsequent loans, financing and early repayment / repayment of interest and principal on the Company’s borrowings (at least 75%) as well as for general needs. of the company (up to 25%). The main managers of the issue are Equirus Capital and JM Financial Limited.

Who should invest?

Who should invest?

This number is only accessible in Demat format. You can apply online or on any broker’s website where you have a Demat account. JM NCD’s financial products have a high yield and high interest rate. Since banks offer low interest rates, investors may have an incentive to invest in NTMs. The ICRA and CRISIL ratings assigned these MNTs an AA / Stable rating, which is considered a good rating.

NTMs can be bought by investors willing to take moderate to high risk. These CRS bonds should be avoided by low risk investors.

Investors with a higher risk appetite and wanting to lock in their assets at a higher rate of return can consider NBFC NCDs. For many institutional investors this still makes sense, but for individuals the market can offer a plethora of attractive and rewarding investment alternatives!


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