Skip to main content

Muthoot Finance extended NCD issue to 09 April 2012

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 
Gold loan company Muthoot Finance has recently extended the closing date of its secured redeemable non-convertible debenture (NCD) issue from the earlier March 17 deadline to now April 09.

The issue offers 13%, 13.25%, and 13.43% rate of interest for tenures ranging from two-year to five-and-a-half year. However, this is neither tax-saving nor tax-free (wherein interest income is tax free) investment option. The issue opened on March 2.

The NCD issue on Tuesday just managed to garner Rs 250 crore, which is the core issue size, along with an oversubscription option of another Rs 250 crore. By extending the issue closing date, the company is hoping to mop up Rs 500 crore, according to banking sources.

"The issue was not getting enough response initially," one of the issue arrangers told Moneycontrol.com on condition of anonymity. "In February and March, some tax efficient infra bonds were getting attention from the people who had to invest to save their tax before the financial year ends. However, the bond issue has picked up of late. So far, it has collected around Rs 250 crore. The extension of closing date has worked. Before April 09, it should comfortably reach Rs 500 crore mark," the banker added.

An e-mail sent to George Muthoot Alexander, Managing Director of the company did not elicit any response till the time of writing this article. However, Moneycontrol.com managed to speak with Oommen K Mammen, the CFO of the company.

This is what he said:

"We are focusing on wide range of retail participation in the NCD issue. In the retail category some individuals have showed interest for investment. However, they don't have dematerialized accounts. Our appointed brokers are arranging it for them. It takes some time. Hence, we though of extending the issue closing in the new fiscal year. We are getting good subscription and the issue is going smoothly."

To promote the issue, the company has increased city locations from 100 (in the earlier issue) to 179. Muthoot has earmarked half of the total issue size for retail investors and the rest is for institutional investors, high net worth individuals and non-resident Indians. The face value of each NCD is Rs 1,000 and the minimum application is for five NCDs (Rs. 5,000).

Considering 13.43% coupon size for 5.5 years, the post tax return would be around 12.10% for an investor who comes under 10% tax bracket (annual income upto Rs 5 lakh in a year). Assuming that a bank fixed deposit scheme offers 9%, the same post tax return would around 8.10%.

In the last one year, shares of Muthoot Finance and Manappuram Finance , India's two major gold loan companies dropped nearly 7.50% and 22% respectively as against a fall of around 3% in the 30-share Sensex. The journey for gold loan companies has been fraught with regulatory concerns.

Last year, RBI had removed priority sector status from gold loan companies, which led a higher cost of borrowing for those companies.

Moreover, the Reserve Bank of India (RBI) is likely to step in and keep a check on gold loans disbursed by the banks, reports suggest. The regulator may be planning to regulate interest rates on gold loans, penalties and may impose higher margins on loan to value, which in turn, may hurt business prospects of gold loan companies.

"The company in consultation with the lead managers to the issue has decided to revise the issue closing date and extend the issue period upto April 09,2012. The NCD public issue committee of the company by their resolution dated March 16.2012 has given their approval to the extension of the issue closing date for the issue. The issue shall now close on April 09.20l2," Muthoot Finance had said in a release issued on March 16.

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

Submit filled up application Collection canter near you

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now