Piramal Capital and Housing Finance (PCHFL) is offering you an opportunity to earn more interest than Bank Fixed Deposits. The company is going to issue Non-Convertible Debentures (NCDs) of different tenors.
Piramal Capital and Housing Finance (PCHFL) can raise up to Rs 1,000 through this NCD issue. The issue will open for investment on July 12. It can be invested till July 23. The NCDs of PCHFL will be of 26 months, 36 months, 60 months and 120 months. The interest rate (coupon) of these NCDs will be between 8.1 to 9 percent on an annual basis. There are two interest payment options in NCDs with a maturity period of 26 months. You can either take the interest every year or take it all at once after the maturity period.
This NCD issue has been rated CARE AA (CWD) by CARE Ratings. ICRA has given it an AA rating with a negative outlook. The company’s NCDs will be listed on BSE and NSE. NCDs are a means of raising money for companies. It is like a bond. Through this, the company takes loans from investors for a fixed period. On this she pays interest.
How to get money – In this, you buy its debentures from the company and give it money in return. Let’s assume that the company needs money so that it can grow its business. So, that company issues its debentures in the market. These are issued for a fixed period. On their maturity, the company returns the principal amount of investment along with interest to the investors. By the way, the company can pay the interest on monthly, quarterly and yearly basis also. If you do not take interest, then on maturity you get your money with principal and interest.
HOW TO BUY ANY NCD-NCD can be bought through Demat account. You can also buy them from physical form. You can invest in NCDs as per your wish for two, three, five and ten years. There are two ways to sell them. The first way is to sell them through the stock market. At the same time, the second method is of direct transfer. To sell in the share market, first you have to convert your debentures into demat. Then you have to tell your stockbroker that you want to sell them. He looks for a buyer for you. In Direct Transfer, you have to find the buyer yourself. Then this information will have to be given to the company.