NCD stands for Non-Convertible Debenture, a type of debt security issued by companies to raise money from the capital market. Unlike convertible debentures, NCDs cannot be converted into equity shares. They are mainly issued by Non-Banking Financial Companies (NBFCs) and are listed on stock exchanges such as the NSE and BSE. Investors buy these NCDs to earn regular interest income and receive the principal amount back at maturity.
Active & Upcoming NCD Issues in 2024
The table below outlines the active and upcoming NCDs in 2024 with their respective issue dates and sizes.
Here is the full table of the Active and Upcoming NCD Issues in 2024:
| Company | Open Date | Close Date | Issue Size (₹ Crores) |
|---|---|---|---|
| Adani Enterprises | Sept 4, 2024 | Sept 17, 2024 | 400 |
| Muthoot Fincorp | Aug 28, 2024 | Sept 10, 2024 | 100 |
| Muthoot Mercantile | Aug 23, 2024 | Sept 5, 2024 | 75 |
| Chemmanur Credits and Investments | July 26, 2024 | Aug 8, 2024 | 40 |
| KLM Axiva Finvest | July 22, 2024 | Aug 2, 2024 | 75 |
| Kosamattam Finance | July 19, 2024 | Aug 1, 2024 | 100 |
| SMC Global Securities | July 19, 2024 | Aug 1, 2024 | 75 |
| Edelweiss Financial Services | July 8, 2024 | July 22, 2024 | 100 |
| Sakthi Finance | June 20, 2024 | July 3, 2024 | 75 |
| Nido Home Finance | June 13, 2024 | June 27, 2024 | 100 |
| IIFL Samasta Finance NCD Tranche II | June 3, 2024 | June 14, 2024 | 200 |
| 360 ONE Prime | May 24, 2024 | June 6, 2024 | 100 |
| Indiabulls Housing Finance Tranche | May 13, 2024 | May 27, 2024 | 100 |
| Muthoot Mercantile | May 6, 2024 | May 17, 2024 | 50 |
| Motilal Oswal Financial Services | April 23, 2024 | May 7, 2024 | 500 |
| Muthoot Fincorp | April 10, 2024 | April 25, 2024 | 100 |
| Kosamattam Finance | April 8, 2024 | April 23, 2024 | 125 |
| Edelweiss Financial Services | April 8, 2024 | April 23, 2024 | 100 |
| ICL Fincorp | April 5, 2024 | April 23, 2024 | 75 |
| Indiabulls Housing Finance | Mar 5, 2024 | Mar 5, 2024 | 100 |
| Navi Finserv Limited | Feb 26, 2024 | Mar 7, 2024 | 300 |
| Chemmanur Credits and Investments | Feb 20, 2024 | Mar 4, 2024 | 50 |
| Nido Home Finance Limited | Feb 13, 2024 | Feb 26, 2024 | 50 |
| UGRO Capital Limited | Feb 8, 2024 | Feb 21, 2024 | 100 |
| Sakthi Finance Limited | Feb 8, 2024 | Feb 21, 2024 | 100 |
| Indel Money Limited | Jan 30, 2024 | Feb 12, 2024 | 100 |
| Cholamandalam Investment and Finance | Jan 19, 2024 | Jan 25, 2024 | 500 |
| Muthoot Fincorp Limited | Jan 12, 2024 | Jan 25, 2024 | 75 |
| Edelweiss Financial Services Limited | Jan 9, 2024 | Jan 22, 2024 | 125 |
| 360 ONE Prime Limited | Jan 11, 2024 | Jan 15, 2024 | 1000 |
| Muthoot Finance Limited | Jan 8, 2024 | Jan 19, 2024 | 100 |
| Kosamattam Finance Limited | Jan 1, 2024 | Jan 12, 2024 | 100 |
For a complete list of NCD issues, visit our NCD page.
How to Invest in NCDs and Get Returns
Investing in NCDs is similar to investing in an IPO. You can apply for NCDs using ASBA (Application Supported by Blocked Amount) or UPI (Unified Payments Interface). Here’s a step-by-step guide:
- Research the NCDs: Visit our NCD section to check the list of active and upcoming NCDs.
- Choose Your NCD: Decide which company’s NCD you want to invest in based on its interest rate, credit rating, and tenure.
- Apply via ASBA or UPI: Use your bank’s net banking portal or app to apply. The amount will be blocked in your account until the NCD is allotted.
- Wait for Allotment: The allotment process usually takes a few days. If allotted, the NCDs will be credited to your Demat account.
By investing in NCDs, you lend money to the company. In return, you earn interest, which is paid periodically, and get your principal back at the end of the maturity period. NCDs are long-term investment options that can offer higher returns than traditional fixed deposits.
Why Consider Investing in NCDs?
- Higher Interest Rates: NCDs generally offer higher interest rates compared to fixed deposits or savings accounts.
- Regular Income: NCDs provide periodic interest payments, which can be monthly, quarterly, or annually.
- Liquidity: NCDs are listed on stock exchanges, providing liquidity to investors.
- Diversification: Investing in NCDs allows you to diversify your portfolio by including fixed-income securities.
Factors to Consider Before Investing in NCDs
- Credit Rating: Check the credit rating of the NCD. Higher-rated NCDs are safer but may offer lower interest rates.
- Interest Rate: Compare interest rates across different NCDs to find the most suitable one.
- Tenure: Consider the tenure of the NCD, which can range from 1 year to 10 years.
- Issuer’s Financial Health: Analyze the financial health and stability of the issuing company.
Frequently Asked Questions (FAQs)
1. What is an NCD?
An NCD (Non-Convertible Debenture) is a debt instrument issued by companies to raise capital. It cannot be converted into equity shares and offers fixed interest payments.
2. How do I invest in NCDs?
You can invest in NCDs through ASBA or UPI by applying via your bank’s net banking portal or mobile app, similar to applying for an IPO.
3. Are NCDs a safe investment?
NCDs come with varying levels of risk based on their credit rating. Higher-rated NCDs are safer but may offer lower returns. Always consider the credit rating before investing.
4. Can I sell my NCDs before maturity?
Yes, since NCDs are listed on stock exchanges like NSE and BSE, you can sell them before maturity if there is enough liquidity.
5. What are the tax implications of investing in NCDs?
Interest earned from NCDs is taxable under “Income from Other Sources.” If you sell the NCDs before one year, short-term capital gains tax applies; otherwise, long-term capital gains tax is applicable.
6. What happens if the company defaults on its NCDs?
If a company defaults, NCD holders may lose their principal and interest. However, secured NCDs have some level of protection, as they are backed by assets.
For more details, check our investment tips page.
Conclusion
Investing in NCDs is an effective way to earn higher returns compared to traditional savings instruments. By understanding how NCDs work, analyzing the credit ratings, and choosing the right NCD, you can make informed decisions to grow your wealth.
Explore more about IPO investments and IPO gray market.
