Invest Money in Debenture and Get Interest Rate Up to 10.45%
Do you prefer investing in FDs or post office small savings schemes? If yes, then this news will be of your use.
Actually, here we will tell you about better investment options than FD and small savings schemes of post office. This option is debenture. Know further the full details.
Edelweiss Financial Services Ltd. Issue
Edelweiss Financial Services Limited has started 2023 with a non-convertible debenture (NCD) issue. It has come up with a public NCD issue of Rs 400 crore.
The company continues to issue NCDs. Presently, it has outstanding NCD liabilities (as on March 2022) of about Rs 15,500 crore.
How much return will investors get to choose any one of the 10 categories of debentures for a period of 24 months to 120 months.
The interest rate will be offered monthly, annually and finally compounded.
You can choose any of these options. The interest rate will range from 9 percent to 10.45 percent per annum.
Minimum investment required In the NCD issue that the company had earlier introduced in October 2022, the highest coupon rate (interest rate) offered was 10 per cent per annum.
The new NCDs come with a face value of Rs 1,000 and you can invest a minimum of Rs 10,000. You can invest and hold these NCDs only in dematerialized format. Hence, it is essential for you to have a demat account.
Business of Edelweiss Financial Services
Edelweiss Financial Services is a well capitalized, diversified business group operating in the financial sector across various cities in India.
Most of its income comes from its wholesale business, but the group also operates a number of non-lending businesses related to wealth management, asset management, capital markets, insurance and asset reconstruction.
The company has a highly visible and credible presence in the banking and finance industry. The company has healthy cash and bank balance, which is around 10 per cent of its total financial liabilities.
Hence, its liquidity position is good. This enables and provides adequate interest cover on the outstanding liabilities. The allotment of debentures will be done on first come first serve basis.
Check the Option to Get the Return
You can invest for four tenures – 2 years, 3 years, 5 years and 10 years. There are 3 options to get interest – monthly, annually and lump sum at maturity.
But if you invest for 2 years, you will not get the option of getting monthly interest.
Among these, the highest interest will be 10.45 percent, which will be given if you choose to get annual interest on the investment for a period of 10 years.
The lowest interest is for a period of 2 years. Then whether you take interest together after 2 years or take it annually. Edelweiss Financial Services has 29 subsidiaries.
Through them, it provides lending, asset management, asset reconstruction, insurance and wealth management services. For investors who want to generate regular income through debt option, this issue can be a great fit.
