At a time when interest rates are at a very low level and you will get a maximum annualized return of 5.4 per cent on FDs in big banks, Piramal Capital & Housing Finance Limited has come up with a new investment option. This is Non-Convertible Debentures (NCDs). On NCDs, you will get returns of up to 9% from Piramal. Here we will give you information about these NCDs so that you can decide whether the option offered by Piramal is better for you or not.
How long is the investment opportunity
Piramal Capital has come up with an NCD issue, which has opened from July 12. One can invest in this till 23rd July. NCDs up to Rs 1000 crore will be issued in this issue. Let us tell you that the price per NCD is Rs 1000 and you have to invest in at least 10 NCDs. These NCDs will be listed on BSE and NSE.
For how many months will you have to invest
The tenors of these debentures are 26, 36, 60 and 120 months. You will be given 8.35 percent interest on 26 months, 8.50 percent on 36 months, 8.75 percent on 60 months and 9 percent per annum on 120 months. These NCDs will be allotted on first come first serve basis. The lead manager of the issue, A.K. There are Capital Services Limited, Edelweiss Financial Services Limited, JM Financial Limited and Trust Investment Advisors Private Limited.
Know the details of Piramal Capital
Piramal Capital and Housing Finance Limited is a subsidiary of Piramal Enterprises Limited. The company offers loan, real estate and corporate finance services to those seeking personal and corporate assets. With regard to real estate financing, the company offers Loan Against Property, Housing Finance, Digital Purchase Finance as well as Online Personal Loans.
How to Apply for NCD
One can apply for Piramal NCD both online and offline. You can apply through your demat account. Also, if you want, you can download the form from the company’s website and fill the required details and make the payment through check and submit it to the nearest collection centre.
Have to pay tax
Any interest earned on NCDs will be taxed as per your tax slab. Further, NCDs purchased in issue and till maturity (both at face value) will not have any capital gains and hence will not attract any tax. If the NCDs are redeemed after the holding period of one year, LTCGT @ 10 percent without indexation and cess of 4 percent will be applicable. This product is perfect for traditional investors who cannot take a lot of risk in their investments. The money that the company will get through these NCDs will be used to grow its business. Also the money will be used for other general corporate purposes.
