IIFL Finance NCD: If you are looking for a better option for investment, then you have a new option from Wednesday, March 3. The Non-Convertible Debenture (NCD) of IIFL Finance Limited has been opened for investment from today. IIFL Finance has offered NCDs of Rs 1000 crores. The base issue size is Rs 100 crore. While the green shoe option is worth 900 crores. Under this NCD, interest is available up to 10.03 per cent per annum in different investment options. That is, 4 to 5 percent more than fixed deposits. It has been opened for investment from March 3, which will be closed on March 23.
IIFL Finance has received an AA rating with negative outlook from CRISIL. At the same time, it has an AA + rating with negative outlook from brickwork ratings. That is, the credit risk is low but not completely safe either. NCDs will be issued only in the form of demat.
Duration and interest
IIFL Finance’s NCD has a duration of 87 months (7 years 3 months). Investors have 3 options in this NCD. Investors will get 9.6 percent return in the monthly option. The interest in the annual option is 10 per cent. At the same time, if you take the cumulative option, you will get 10.03 percent interest.
What is NCD?
NCDs are non-convertible debentures or financial instruments. The company issues these. Through them, she raises money from investors. Public issue is brought for this. Those investing in them get interest at a fixed rate. The duration of NCD is fixed. On their maturity, investors get their principal amount with interest. These banks are debt instruments like FDs.