NCD Issue 2020

NCD Issue 2020

NCD issue means Non-Convertible Debenture public issue. NCD is a Secure and Redeemable Corporate Bond, a bond issued by a corporation to raise money from the capital market. Unlike equity shares, bondholders do not have any ownership interest in the company. They are also known as securities that do not have any equity element attached to it. NCD are tradable instruments. They are listed with major stock exchanges (BSE and NSE) in India.

When one buys a corporate bond, one lends money to the company. In exchange, the company promises to return the money on a specified maturity date along with a stated rate of interest.

Corporate bonds are debt securities. They are considered as a long-term investment option. The maturity period of these securities ranges from 1 year to 20 years.

The NCD issue process is similar to the IPO process. Investors apply for NCD shares through a broker. Based on the subscription, they receive the number of NCD shares. The NCD's are credited to the demat account and the money gets deducted from the trading/bank account.

NCD Issues Open in India 2020

Company Name Issue Open Issue Close Issue Size - Base (Rs Cr) Issue Size - Shelf (Rs Cr) Rating
Muthoot Fincorp Ltd Jun 29, 2020 Jul 17, 2020 100 160 CRISIL A/ Stable; BWR A +/ Stable
Muthoottu Mini Financiers Ltd Jun 03, 2020 Jun 26, 2020 100 200 CARE BBB- /Stable
KLM Axiva Finvest Ltd Jun 02, 2020 Jun 26, 2020 100 125 CARE BB+/ Stable
Kosamattam Finance Ltd Mar 19, 2020 May 22, 2020 150 300 IND BBB/ Stable
Sakthi Finance Ltd Mar 13, 2020 Apr 30, 2020 100 200 ICRA BBB/ Stable
Muthoot Vehicle & Asset Fin Ltd Feb 25, 2020 Mar 11, 2020 100 200 CRISIL A/ Stable; CARE BBB+/ Stable
JM Financial Products Ltd Feb 13, 2020 Mar 09, 2020 100 2000 ICRA AA/Stable, CRISIL AA/Stable
Muthoottu Mini Financiers Ltd Jan 20, 2020 Feb 12, 2020 100 200 CARE BBB- /Stable
Muthoot Fincorp Limited Jan 09, 2020 Feb 04, 2020 250 480 BWR A+ /Stable, CRISIL A/Stable
Edelweiss Finance & Investments Ltd Jan 23, 2020 Jan 31, 2020 125 250 CRISIL AA-/ Stable; CARE AA-/ Stable
Shriram Transport Finance Company Ltd Jan 06, 2020 Jan 22, 2020 200 10000 CARE AA+ /Stable, IND AA+ /Stable, CARE AA+ /Stable
Tata Capital Housing Finance Ltd Jan 07, 2020 Jan 08, 2020 500 5000 CRISIL AAA/ Stable, ICRA AAA/ stable

Note:

  • NCD Issue full form is Non-Convertible Debenture public issue. They are corporate bonds with fixed interest and tenures. NCD's are similar to bank FD.
  • NCD public issue is similar to an IPO.
  • NCD's are tradable instruments. Investors can buy/sell in the stock exchange similar to equity shares even before the maturity date arrives.
  • An investor can hold NCD in demat as well as paper certificates.