Indel Money to offer NCD yielding return of 12.25% p.a, claims to double your money in 6 years

Indel Money Limited, a Non-Banking Finance Company (NBFC), will offer secured, redeemable, non-convertible debentures at an effective yield of 12.25 per cent for a tenor of 72 months, as per its prospectus filed with Sebi. The issue will open on June 6, 2023, and close on June 19, 2023.  

The public issue of NCDs will be aggregating up to Rs 5,000 lakh, with an option to retain over-subscription up to Rs 5,000 lakh, aggregating up to Rs 10,000 lakh. The company claim to double your money in 6 years. 

The mode of interest or refund or redemption payments will be through NACH, NEFT, RTGS, direct credit and any other method permitted by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) from time to time to help debenture holders. 

Ratings: The NCDs have been rated BBB +/Stable by CRISIL. Ratings reflect a rating agency’s opinion of the company's financial strength, operating performance, strategic position, and ability to meet obligations. Any downgrade of credit ratings would increase borrowing costs and constrain access to debt and bank lending markets and, as a result, would adversely affect the company's business. In addition, downgrades of credit ratings could increase the possibility of additional terms and conditions being added to any new or replacement financing arrangements. 

How to apply? You can apply for the issue through a stock broker via a demat account. The money will be blocked when you use (application supported by the blocked amount or ASBA process) for the NCD issue. The NCDs offered are proposed to be listed on the BSE Limited. 

The investment made in NCD is taxable as per your tax slab; that is, the income gets added to your taxable income and taxed as per the tax slab you fall in.  

The lead Manager for the Issue is Vivro Financial Services Private Limited. 

What should you do? High-risk high return is a common statement that everyone understands. Hence, it is best to be cautious about ratings and the risk you undertake while subscribing to an NCD issue that assures you of a high-interest rate. Typically, BBB refers to moderate safety. However, one should prefer the CRISIL AAA rating NCD issue, which means the highest safety. Hence, one should not compromise safety to earn more returns. Besides, several other investment options, such as corporate fixed deposits with good credit ratings, are available that can help you get decent returns compared to bank FDs.