Money Excel - Personal Finance Blog

Menu
  • Home
  • Business Ideas
  • Stock Market
  • Mutual Funds
  • Incometax
  • Credit Card
  • Insurance
  • Downloads
Home
Investment
IIFL Secured Bond – Review Invest or Not

IIFL Secured Bond – Review Invest or Not

Raviraj Parekh July 5, 2020

IIFL

Last year we have talked about IIFL Unsecured Bonds. Today we will discuss about IIFL Secured Bonds. IIFL secured bond public issue will open on 17th September,2013 and will close on 4th October,2013.

Let us check out features of IIFL Secured Bond -2013

IIFL(India infoline limited)SECURED BOND with 12.68% interest….

  • Monthly and Annual interest options available
  • 12.68% p.a. yield on Monthly and 12% p.a. yield on Annual option
  • Bonds are secured and carry maturity of 3 and 5 years
  • No TDS will be deducted in DEMAT Form
  • Bonds will be listed on NSE and BSE
  • Lock in an interest rate of 12% p.a. for 3 or 5 years
  • Face value of each NCD bond Rs 1,000 each. Base issue size of Rs 525 cr and an option to retain further Rs 525 cr, totaling upto Rs 1,050 cr
  • Rated ‘CARE AA’[Double A] by CARE and ‘BWR AA (Outlook:Stable)’ by Brickwork which indicates high degree of safety and carries very low credit risk
  • The bonds have a fixed maturity of 3 and 5 years and will be listed on both NSE & BSE to provide liquidity to the investors
  • Monthly interest payment option to enable regular cash flows to investors as well as annual option is also available
  • Long-term debt rating has improved despite difficult business environment, indicating robust business model
  • No Call & Put Option available, which means company Cannot prematurely redeem the bonds
  •  Minimum application size is 5,000; allotment on a first-come-first-served basis;
  • Offer opens on September 17, 2013 and closes on October 4, 2013
  • Allotment will be done on first come first serve basis

IFIL Secured Bond Should I Invest?

Looking at first glance with 12.68% interest its very lucrative offer, but we should look at return on a post-tax basis.

For someone in highest tax bracket 30% this coupon rate of 12% will reduce to 8.4% post tax. For tax bracket of 10% it will reduce to 9.6% post tax and to 10.68% for 20% tax bracket. Post tax this issue offers around 2-3% higher yield compare to fixed deposit.

Apart from returns, security of capital is major aspect one should look for, This issue is rated AA by CARE and BWR which indicates high degree of safety.

Overall safety and return prospective IIFL bond is good for investment but, while evaluating the issue, you should really consider how much money you are going to put in this, how much extra interest can that earn you, and whether that’s enough for you & your goal.

Tweet
Share
Whatsapp
Pinterest
Prev Article
Next Article
Tags:IIFL IIFL Bond Details IIFL Bond Features IIFL Bond Review IIFL NCD IIFL Secured Bond

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

Leave a Reply Cancel Reply

Search

Top Posts & Pages

  • Rakesh Jhunjhunwala Portfolio Holdings - April 2021
  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • 235 Small Business Ideas with Low Investment in 2021-22
  • 20 small manufacturing business ideas with low cost
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • How to check Property Records and Land Records online in India?
  • How to Check EPF Balance via SMS EPFOHO
  • Download Income Tax Calculator FY 2021-22 (AY 2022-23)
  • 10 Best Small Trading Business Ideas
  • Top 5 Best Stock Screener for Indian Stock Market

Subscribe to Blog via Email

Join 5,481 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |