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Jan172013 by wealth18.comNo Comments

IRFC Tax free Bonds 2013 Issue – Details & Review

Bonds

(Last Date for IRFC Tax free Bonds is extended to 8-Feb-2013) Indian Railway Finance Corporation (IRFC’s) tax-free bond issue is set to hit the market between 21-29 January 2013. IRFC is offering tax-free secured redeemable non convertible bonds to raise Rs 1000 crore, with an option to retain oversubscription upto Rs 8886.40 crore. The issue is similar to previous Bonds of HUDCO, REC, PFC & IIFCL. However, HUDCO is offering better rates. Check my post on HUDCO issue. Last Date for HUDCO is also extended to 7-Feb-2013 About the Company IRFC primarily funds buying of locomotives, coaches and wagons for the Indian Railways. It receives lease rentals from the Railways, which is accounted for in the Railway Budget. This ensures that the loans are securitised against rollin...

Jan12013 by wealth18.comNo Comments

When do you need a PAN Card?

Taxation

1. What is PAN PAN is short form of "Permanent Account Number" . It is a 10 digit alpha-numeric unique number allotted by Indian Income Tax Department. It is issued in the form of a laminated card. The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states. 1a. PAN Structure PAN structure is as follows: ABCPG9999K: First five characters are letters, next 4 numerals, last character letter First 3 characters - are running series - AAA to ZZZ Fourth character - depends on catergory og PAN owner C — Company P — Person H — HUF(Hindu Undivided Family) F — Firm A — Association of Persons (AOP) T — AOP (Trust) B — Body of Individuals (BOI) L — Local Authority J — Artificial Juridical Person G — Govt Fifth character - Surname init...

Jan12013 by wealth18.comNo Comments

Should you invest in Gold ?

Banking

With gold prices touching new highs, you must be regretting for not buying gold when it was “cheaper” 2-3 years ago. You must be thinking – “Should I buy gold now before any further increase in prices?” Government has hiked the import duty in gold from 4% to 6% to curb import of gold. (ET 21-Jan-2013). Why government wants to restrict import of gold? In this post, I have tried to discuss these questions and various other aspects related to gold investment. ============================================================================ We, Indians, love Gold and made India - the world's largest consumer and importer of gold. About 40 per cent of the world's annual gold production is consumed by India and China. In 2011 & 2012, India imported approx. 1000 tonnes ($58 billion) & 800 ...

Jan12013 by wealth18.comNo Comments

Basics of Mutual Fund

Mutual Funds

I remember, when I advised one of my friends to invest via Mutual funds, he replied - "I am afraid of share market and that's why I don't want to invest in Mutual Funds. " Do you also think, investing in mutual funds means investing in share market and it is as risky as share market. Then you are not correct and need to understand the basics of Mutual Fund. It is a Myth that : Mutual Funds means Share Market. Mutual Fund by itself is not an Investment but it is a way to invest in other products like Equity (Shares), Fixed Income, Commodity (Gold), Index, etc Size of Mutual Fund Industry in India As per AMFI, the total Funds under management as on 31-March-2012 is Rs 587,271 crores There are 44 mutual fund companies in India operating 1000+ mutual funds schemes under various categories. Wh...

Dec52012 by wealth18.comNo Comments

CARE Rating IPO Dec 2012 – Details & Review

Stocks

CARE Ratings IPO will open on 7-Dec-2012 & closes on 11-Dec-2012 with price band of Rs 700-750. Research Firm - KRChoksey advises to subscribe to CARE Ratings IPO. See Full report link at end of this post. About the Company & Business Model Credit Analysis and Research Ltd (CARE ratings) is one of the leading credit rating agencies in India. The company was promoted by IDBI Bank, Canara Bank and State Bank of India and stands second after CRISIL in terms of rating turnover. The company has added many income generating pool of products such as SME rating, MSE rating, Edu-grade, Equi-grade, Real Estate and market linked debenture valuation etc. CARE has strengthened its position in IPO grading market by capturing ~ 49.4% market share. Competitors – CRISIL , ICRA Future Outlook 1...

Sep222012 by wealth18.comNo Comments

SREI Infrastructure Finance – NCD Sep 2012 – Details & Review

Bonds

SREI Infrastructure Finance – NCD Details & Review - Sep 2012 SREI Infrastructure Finance is the latest company to raise funds through NCDs. Secured NCD from SREI Infrastructure is offering interest upto 10.30%. The first-cum-first serve issue opens on 20th Sep. It is offering lower rates as compared to recent NCDs of Religare Finvest (12.5%), Muthoot Finance (12%) & Shriram City Union (11.75%) About the Company : Srei Infrastructure Finance Limited (NBFC) provides financial products and services to its customers engaged in infrastructure development and construction, with particular focus on power, road, telecom, port, oil and gas and SEZ sectors in India. With a large customer base and over Rs. 307,643.50 million of consolidated assets under management, Srei Group has a pan-I...

Sep122012 by wealth18.comNo Comments

Religare Finvest Limited – NCD Issue Sept 2012

Bonds

Religare Finvest Limited – NCD Details & Review 12.50% return on 5 year secured NCD from Religare Finvest seems attractive for retail investors. The issue is opening on 14th Sep (on first come first served basis) and offering rates better than recent NCDs of Muthoot Finance (12%) & Shriram City Union (11.75%) Religare Finvest Limited, a subsidiary of Religare Enterprises Limited intends to raise Rs 500 crore from the capital market through its public issue of Secured Redeemable Non-Convertible Debentures. This NCD is offering yield upto 12.6%. About the Company Religare Finvest Limited is subsidiary of Religare Enterprises Limited (REL), a diversified financial services company. It is a Non-Deposit Accepting NBFC, focusing on small and medium enterprises (SME) financing and reta...

Sep122012 by wealth18.comNo Comments

Muthoot Finance NCD Issue – Sep 2012

Bonds

Muthoot Finance NCD Details & Review NCDs are flavour of this year. After Shriram City Union Finance NCD opening on 12-Sep-2012, another NBFC - Muthoot Finance has hit the market with public issue of secured NCDs offering upto 12.25% p.a. interest. The issue will open on 17-Sep-2012. Company Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company provides personal and business loans secured by gold jewellery, or gold loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements. As of June 30, 2012, the Company has branch network of 3,780 branches. The Company’s...

Sep122012 by wealth18.comNo Comments

Shriram City Union Finance – NCD Issue Sept 2012 – Should you invest in it?

Bonds

Shriram City Union Finance Limited – NCD Details & Review In my earlier post, I explained about NCDs and whether you should consider it as Investment option. After India Infoline Financial Services Ltd’s unsecured bonds offering 12.75% per annum, Shriram City Union Finance Ltd has hit the market with a public issue of secured NCDs offering 11.75% per annum. Company Shriram City Union Finance Limited (SCUF) is a part of the Chennai based Shriram group of companies and the sister concern of Shriram Transport Finance. They are entering the debt market second time. SCUF is incorporated in 1986 and is registered with the Reserve Bank of India as a deposit-taking non-banking finance company (NBFC) with its presence in gold loans, small business finance loans, auto loans, two-wheeler...

Sep12012 by wealth18.comNo Comments

What is NCD? Should you invest in NCDs?

Bonds

What is NCD? Should I invest in NCDs? In recent past, you might have seen number of advertisements in newspapers / business news channels, where companies offering lucrative rate of interest for investment in their NCDs. Recent NCD Issues Muthoot Finance Limited NCD Religare Finvest Limited NCD Mannapuram Finance Limited NCD Shriram City Union Finance NCD India Infoline Financial Limited NCD Most of these NCDs were offering interest of 11-14% p.a Lets understand what is NCD and whether you should invest in it. What is NCD Full form of NCD – Non Convertible Debentures In simple words, debenture is an instrument by which company raises money from public for a specified duration and pays a fixed rate of interest. It is like taking loan from public at interest. There a...