Why Should You Invest in 9.70% Shriram Transport Finance NCD – Jan’19

By | February 3, 2019

Shriram Transport FinanceShriram Transport Finance has come up with the latest debenture. This non-convertible debenture is offering an interest rate of up to 9.7%.

 Some most important points under Shriram Transport Finance NCD

  • Minimum required investment is Rs.10,000.

  • The offer period for the latest NCD is from 15 Oct 2018 to 29th Oct 2018.
  • The maximum investment limit is Rs.10 lacs for retail investors.
  • If you are an NRI then you are not eligible to apply for this latest NCD offered by Shriram Transport Finance.
  • The value of one bond is equal to Rs.1000.
  • First come first serve allotment method has been applied to offer to the scheme.
  • If you are a retail investor, then you are eligible for an annual interest rate of 9.12% to 9.7%. However, the interest rate will depend upon the tenure period of investment.
  • Why NCD issue is completely secured because the debt of the company is backed by the asset of the company.
  • In this issue, you will get a higher interest rate than that of regular banks or FDs.
  • The credit rating of this issue is great that is why it is a great investment issue.

Why it is not a great way to invest in NCD?

  • These days, regular banks have started increasing the interest on FDs so it is not a great idea to lock in your money for a period of 10 years or more.

  • There are many options to invest these days with small bank FD which are offering great interest rate.

Who can apply for Shriram Transport Finance NCD?

All the Indian citizens with the citizenship of India are eligible to apply for Shriram Transport Finance.

  • Category 1(for QIB portion) 10% of the NCD issue is reserved for QIB.
  • Category 2(for a corporate portion) 10% of the NCD issue is reserved for a corporate portion.
  • Category 3(for HNIs)40% of the NCD issue is reserved for NHIs.
  • Category 4(for the retail individual which includes HUFs) 40% of the NCD issue is reserved for the retail individual including HUFs.

Note: NRIs are not eligible to apply for this issue.

Conclusion: considering all the above-given facts, it is advisable to you to invest in this Shriram Transport Finance NCD issue.  The interest rate of the issue is great, however, it completely depends upon your needs that whether you want to invest in this issue or not. have a look on above-given points and then decide on your own.

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