Muthoot Finance NCD opening on 23rd August.

Anyone is applying for this NCD or skipping?

Happy Investing!

I will be applying for this one.

Muthoot Finance NCD Issue:

Opens: 23rd August 2011 (today).
Closes: 5th September 2011.

Those who want to apply, should apply today.

Those who apply tomorrow or later may not get any NCDs.

I am not applying, but investors can invest if they want.

What I stated in Manappuram Finance NCDs' thread also applies to this issue:

The details are as follows:

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I am applying for this issue.

Best to apply for "Series 3".

I want to withdraw my application? How to withdraw it?

I submitted physical application form and submitted in the bank.

Why do you want to withdraw?

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After seeing IIISL, It does not make sense to continue with Muthoot.

Did you invest for listing gains or for the long-term?

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The offer document doesn't have details on how to withdraw an application, but it states this:

You should contact the registrar (Link Intime) and they may be able to help you.

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I neither invested for listing gain nor for long term. The question is how much money you have and what are the options. For example if I am getting 1050 at the time of listing, the yield will be reduced to approx 11%. And If there are other NCDs which are giving better returns (Considering yield, time duration, interest rate etc), I will sell this and buy that. Or if there are new NCDs giving better returns, I may sell older one and apply for new one.

12.25% interest is definitely good one. I can consider investing for 5 years. But, Considering that India Infoline NCD is giving much better yield, Does it make sense to continue with Muthoot Finance?

What is wrong with IIISL? Shriram Transport NCDs are still on premium.

I applied purely for listing gain and now after looking the situation of IIISL NCD, I am worried.

The cheque is already cleared from my account at this time.

What to do friends?

In my opinion IIISL NCD comes with higher risk. I don't trust any broking firm except those run by banks.

In the past many stock broking firms have diverted investors' money into stock markets for speculation.

If I was in your place, I will never buy a broking firm's NCD for the long-term.

Call the registrar, they will tell you what can be done. Do it today. Once the issue is closed, you won't be able to withdraw.

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Recently I read in papers suggesting to avoid NCD totally.

Though not much valid and strong reasons given except the fact that this companies giving such returns only because it has become tougher for them to get money and bank is not ready to finance them.

And if banks are not ready then something seriously wrong hence avoid. Though i personally find no takes in the article and find it short sight but i am holding my horses.

Also as said i too feel Muthoot and other is well placed companies then brokering one. Broking firms are in bad state with no new client adding and old one not ready to put money. Hence 1-2 or getting bankrupt won't surprise me and that will seriously put doubt on money taken by parent for other needs too.

I sent a mail to registar and got following reply.

I don't understand what will happen if I send a scanned withdrawal request but not a hard copy.

I have invested Rs 10 Lakhs in Shiram City Transport NCD in 3 demats, Rs 3 Lakhs in Manapuram and 3 Lakhs in Muthoot.

Please advise for withdrawal.

Me too want expert's opinion whether to Withdraw or to be invested.

I don't see any reason why investors should panic, except those who invested for listing gains.

Manappuram NCDs have a tenure of just 24 months. The company is doing fine and it's unlikely that things like worsen so badly in next 24 months that the company will have to default.

Muthoot Finance NCDs are of longer tenure. Again, I don't see any liquidity problems for the company in next 6-12 months. After that one will have to look at a fresh look at the company to decide whether the NCDs are worth holding.

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I am not panicking but I see a opportunity here. I have limited funds, so I can't invest in all the NCDs. So I need to take decision which one to choose?

1) Muthoot Finance @ 1000 per NCD
2) IndiaInfoline @ 940 per NCD

I have not applied for Manappuram. Other option is to buy Manapuram or Muthoot Finance from Market.

Also I have some unsecured NCDs from Shriram Transport? Should I switch from unsecured NCDs to secured NCDs of IndiaInfoline, Muthoot or Manapuram?

Which one is more safe? Unsecured NCD from Shriram Transport or secured NCDs from recent issues.

This issue seems to have received lukewarm response as unlike previous issues which closed subscription much earlier before the closing date. Anybody has an update on this and the possible allotment dates?

Regards.

I think the allotment is till not out.

I did not understand why they are delaying?

Manapprum is already listed today.

Although both are offered around the same time period and closing date was also same.

Manappuram closed on 26th August whereas Muthoot closed on 5th Sept.

Oh Ok. I thought they closed before their closing date.

Happy Investing!

Got Full Allotment for Muthoot NCD. I got credit in my demat account.

Allotment status available on Link Intime

Link Intime

Yes I have also received full allotment. Wonder when they will credit the interest.

Regards

Listing on Tuesday, 20th September

http://www.nseindia.com/content/circulars/cmls18897.zip

N1 - 2 year, 11.75%.
N2 - 2 year, 12.00%.
N3 - 3 year, 12.00%.
N4 - 3 year, 12.25%.
N5 - 5 year, 12.00%.
N6 - 5 year, 12.25%.

N2, N4 and N6 are the ones with higher interest rates. (Corporates, HNIs and retail have been given the same rate in this issue).

N6 will be most liquid as most NCDs have been issued in this series.

N5 will have no volume. Only 10000 NCDs have been issued in N5 series.

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