Misc

Muthoot Finance has opened its public issue of NCDs on 2-Sep-2013 & it closes on 16-Sep-2013 offering 11 investment options with yield upto 12.55% Type of Instruments – Secured & UnSecured Redeemable NCDs Size of Issue - Rs 150 crore through this issue, with an option to retain oversubscription upto Rs 150 crore, aggregating to a total of upto Rs 300 crore. Listing – Proposed to be listed on BSE Credit Rating - AA-/negative by CRISIL and AA-/negative by ICRA . Investment options – Monthly / Annually / Cumulative Interest for 24 months, 36 months, 60 months , 72 months About Company Muthoot Finance 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 indivi...

State-run Rural Electrification Corp (REC) plans to raise Rs. 3,500 crore from the market which is inclusive of the green-shoe option of Rs. 2,500 crore. The issue is open on 30-Aug-2013  &  expected to be oversubscribed and will perhaps end before its schedule closing date of 23 September, 2013. Issue Open on 30-Aug-2013 Issue Closes on 23-Sep-2013 (First-come-first-serve) CRISIL, CARE, India Ratings and ICRA have given the high 'AAA' rating to the bonds.   What is the interest rates offered on these REC tax free Bonds? Options Series 1 Series 2 Series 3 Tenure 10 years 15 years 20 years Coupon rates (retail individual investors) 8.26% 8.71% 8.62% Effective yield - 30.9% tax bracket 11.95% 12.60% 12.47% Effective yield - 20.6% tax bracket 10.40% 10.97% 10.86...

Shriram Transport Finance Company (STFC) has come out with public issue of secured non convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to a total of up to Rs 750 crore with yield upto 11.15% About the Company STFC is Flagship Company of "SHRIRAM" group which has significant presence in financial services & non-financial services business. STFC was incorporated in the year 1979 and is registered as a Deposit taking NBFC with Reserve Bank of India under section 45IA of the Reserve Bank of India Act ,1934. Shriram Transport Finance Company's primary focus is on financing pre-owned commercial vehicles. In addition, the company also provides finance for new commercial vehicles, passenger commercial vehicles, multi-utility vehicles, three wheelers and tractors. In ...

In recent news, you must have heard about government companies like NTPC, Oil India, NMDC etc raising money via Offer for Sale (OFS). In this post, I have tried to explain the details regarding OFS, its process mechanism, how it is different from traditional IPO / FPO route and whether it is beneficial to retail investors. What is OFS? OFS stands for Offer for Sale & it is similar to FPO (Follow-on Public offer). It provides an exchange based bidding platform to promoters to sell/dilute their holdings in listed companies in a transparent manner. The Securities and Exchange Board of India (SEBI) by a circular CIR/MRD/DP/18/2012 dated 18 July 2012, has permitted the Stock Exchanges to provide a separate window, i.e. apart from the existing trading system for the normal market segment, t...

In this week, there is wave of seconf tranche of Tax free bonds. PFC, HUDCO, REC, IRFC are launching second round (tranche) of tax free bonds, Power Finance Corporation (PFC) has come out with Tranche II of the tax free bonds after having raised Rs 700 crore in Tranche I in Dec 2012. About the Company PFC is engaged in financing and promotion of power generation, transmission and distribution including renewable energy projects throughout the country. State electricity boards are the primary borrowers. A lot has been talked about the bad health of the SEBs. However, PFC being a government owned organisation, investors may not be too concerned about the financial health of the company even if the default from the SEBs continues. PFC posted a net profit of Rs 1,117 crore for the third quart...

UPDATE - For HUDCO Tax free bonds in Sep 2013- Oct2013, please go to this link Below, post is for HUDCO bonds issue in Feb-Mar-2013 In this week, there is wave of second tranche of Tax free bonds. PFC, HUDCO, REC, IRFCare launching second round (tranche) of tax free bonds, Housing and Urban Development Corporation (Hudco) is targeting to raise up to Rs 2,805 crore through the second tranche of its public issue of tax-free bonds. In the first tranche, which was closed on February 7 2013, the company had raised Rs 2,195 crore. The second tranche would open from Feb 21 and close on March 15. The issue size is Rs 500 crore with an option to retain oversubscription up to Rs 2,805 crore About the Company HUDCO is a techno-financial institution engaged in the financing and promotion of housing ...

In this week, there is wave of second tranche of Tax free bonds. PFC, HUDCO, REC, IRFC are launching second round (tranche) of tax free bonds, REC - Rural Electrification Corporation is targeting to raise up to Rs 2582 crore through the second tranche of its public issue of tax-free bonds. The first tranche was closed in Dec 2012. The second tranche would open from Feb 25 and close on March 15 2012. The issue size is Rs 100 crore with an option to retain oversubscription up to Rs 2,482 crore. About the Company REC is a Navratna Central Public Sector Enterprise under Ministry of Power. Company's main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to state Electricity Boards, State Government Departments and Rural el...

(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...