Wednesday, July 25, 2012

10 things to know about the Sriram Transport NCD Issue

Sriram Transport Non-Convertible Debenture Issue opens tomorrow. Let us examine the Pros and Cons of Investing in this issue.

1. Sriram Transport NCD is for 2 tenures 36 months and 60 months. For 36 months, for Retail investors they are offering 11.15 % interest and for 60 months it is 11.4 %.

2. They also have a cumulative option for the above 2 tenures.

3. Retail investors are those who will invest within the 5 lakh limit.

4. The issue has been rated AA by Crisil.

5. The subscription is on first come first served basis. Hence those interested in subscribing, please do so tomorrow itself.

6. The issue closes on

7. There is no TDS Limits on De-matted NCDs.

8. Issue closes on 10th August 2012.

9. For detailed explanation on NCDs, please refer my last post on Sriram Transport issue about 1 year back.

10. One can redeem the NCDs as they are listed on the NSE and one gets the sale proceeds on 3rd day after selling.

I would suggest one has limited exposure to this issue. Such high yield, medium risk instruments increase the amount of Interest earned on one's fixed income portfolio.

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