Indostar Capital Finance NCD September 2024 – Overview
Indostar Capital Finance Limited has announced secured NCD bonds which are now accepting applications. Indostar Capital Finance Limited is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India as an NBFC-ML. Indostar Capital Finance NCDs offer NCD interest rates up to 10.7%. The tenor of these NCDs ranges from 24 to 60 months and interest is payable either quarterly, annually or cumulatively. Should I Invest? Indostar Capital Finance NCD September 2024 So what is the question? What are the risk factors to consider before investing in such high-risk NCDs? In this article, Indostar Capital Finance NCD September 2024 Review.
About Indostar Capital Finance Limited
The Company is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India as NBFC-ML.
The company is a professionally managed and institutionally owned company primarily engaged in providing secured finance solutions to various categories of borrowers such as used and new vehicle finance for transporters, affordable home finance solutions for mortgage borrowers, loans to SME borrowers and structured term finance solutions for corporates.
Indiastar Capital Finance NCD September 2024 Details
The details of the NCD issue are as follows:
| Application start date | September 6, 2014 |
| Subscription End Date | September 19, 2024 |
| Name of Issuer | Indostar Capital Finance Limited |
| Security Type | Secured Redeemable Non-Convertible Debentures (Secured NCDs) |
| Issue size (base) | 150 crore |
| Issue size (option to hold oversubscribed amounts) | 150 crore |
| Total Issue Amount | 3 billion rupees |
| Issue price | 1,000 per bond. |
| Face value | 1,000 per bond. |
| series | Series I to V |
| Minimum Lot Size | 10 bonds and then 1 bond |
| Tenure | 24, 36, 60 months |
| Interest payment frequency | Quarterly, annual, cumulative |
| Published in | Within 6 business days on BSE |
| Lead Manager | Nuvama Wealth Management Limited |
| Bond Trustee | IDBI Trust Services Ltd. |
Indostar Capital Finance NCD September 2024 coupon interest rate
According to Indostar Capital Finance NCD September 2024 Prospectusthe interest rates are like this.
| series | I | II | III. | IV | Five |
|---|---|---|---|---|---|
| Frequency of interest payments | Annual | Accumulation | Quarterly | Annual | Annual |
| Term of employment (months) | twenty four | twenty four | 36 | 36 | 60 |
| Coupon (annual interest rate) | 10.50% | N/A | 10.30% | 10.70% | 10.50% |
| Effective Yield (annual %) | 10.50% | 10.50% | 10.70% | 10.70% | 10.49% |
| Amount at maturity (Rupees) | 1,000.00 | 1,221.31 | 1,000.00 | 1,000.00 | 1,000.00 |
Corporate Credit Rating
These NCDs are rated AA-/Stable by CARE Ratings. Financial instruments with this rating are considered to have the highest security in terms of timely fulfillment of financial obligations and have very low credit risk.
Subject of the problem
The Company intends to use the net proceeds from the issuance of NCDs to fund the following purposes:
- Loan destination
- General Corporate Purposes
What is the company’s revenue and profit situation?
Our consolidated financial statements are detailed below.
| End of period | March 31, 2022 | March 31, 2023 | March 31, 2024 |
|---|---|---|---|
| assets | 9,661.5 | 9,122.2 | 11,120.7 |
| Revenue | 1,174.3 | 1,179.7 | 1,397.5 |
| Profit after tax | -736.5 | 225.2 | 115.8 |
Company Contact Information
Indostar Capital Finance Limited. Off No.-301, Wing A, CTS No. 477,
Silver Utopia, Chakara Road, Opposite Procter, Opposite Procter and Gamble, Andheri (E), Mumbai – 400 099 Tel: +91 22 4315 7000
Email: investor.relations@indostarcapital.com
Website:
Reasons to invest Indostar Capital Finance NCD September 2024
- Indostar Capital Finance’s NCD bonds offer attractive interest rates, allowing investors to earn returns of up to 10.7% per annum.
- The company issues secured NCDs, which are safer as compared to unsecured NCDs. In case the company gets liquidated or closed down due to any reason, secured NCD investors get priority in repayment of capital and interest as these NCDs are backed by the assets of the company. Hence, investing in such secured NCD options is considered safe.
- The company has a favorable credit rating of AA-/Stable from CARE Ratings.
- Five flexible investment options are offered, allowing investors to choose the one that best suits their preferences.
Risk Factors Indostar Capital Finance NCD September 2024
- From fiscal 2023 to fiscal 2024, the company’s revenue grew 18%, but its profit margins fell 49%. The company still incurred losses in fiscal 2022, and there is no assurance that it will not incur losses in future years.
- We are exposed to fluctuations in interest rates in both our lending and treasury operations, which may cause our net interest income to fluctuate and affect our profitability.
- We are expanding into new business areas and if we are unable to operate these new businesses successfully and profitably, our operating results and financial condition may be adversely affected.
- The previous auditor expressed a qualified/adverse opinion in his audit report on the audited financial statements for fiscal years 2023 and 2022 and highlighted certain matters.
- The Company, its directors, promoters and its subsidiaries are subject to certain legal proceedings and adverse decisions in such proceedings could have a material adverse effect on the Company’s business, financial condition, cash flows and results of operations.
- We have not historically complied with the minimum public shareholding requirements set forth in the SCRR.
- Please see the NCD prospectus for a comprehensive list of risk factors.
Indostar Capital Finance NCD September 2024 – Should You Invest or Avoid?
Indostar Capital NCDs offer competitive interest rates of up to 10.7%.These NCDs are rated AA-Stable by CARE Ratings, which is considered a good rating.
Keep in mind that credit ratings are subject to change at any time. The company has incurred losses in the past, and profit margins have declined in FY24 compared to the previous year.
Investors can invest in such NCDs if they are willing to consider all these risk factors.
Suresh KP is the Founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and NISM Certified Research Analyst. He has been involved in analyzing financial markets for the last 20 years. He can be reached at suresh@myinvestmentideas.com.
