Should you subscribe to secure NCDs from JM Financial Products Ltd?

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The four-series issue has a variable interest rate option on the shorter end of the maturity curve while the company offers interest rates ranging from 7.91% to 8.30% per year for longer duration bonds.

Here is information about NTMs from JM Financial Products that will help investors like you make an informed call about investing in NTMs.

Objective of the problem

The funds raised in connection with the issuance of Tranche I will be used for lending, financing and early repayment / payment of interest and principal of the Company’s borrowings (at least 75%) and for general purposes. of the company (up to 25%).

Why should you invest?

1) Attractive interest rates

These JM Financial NCDs offer attractive interest rates where investors can earn interest up to 8.3% per annum and yield up to 8.3%.

2) Consistent margins

JM Financial Products generates constant margins. This means that the company has the ability to pay the interest on time to its NCD holders without any delay.

3) Secure DEM

It issues secure MNTs. These DEMs are secure compared to unsecured DEMs. In the event that the business is dissolved / closed for any reason, the NCD Secured Investors would benefit from a preference in repayment of principal as well as interest than that secured by the assets of the business. Hence, it is prudent to invest in such secure NCD options.

4) Stable rating

The company’s NTMs are rated AA / Stable by the ICRA and CRISIL ratings, indicating high security and low risk with respect to the timely servicing of financial obligations.

Highlights of the problem

Conclusion:

JM Financial Products Ltd has a diverse product line. These DEMs are secure compared to unsecured DEMs. Retail investors may also consider investing in the show given the company’s ongoing track record. Overall, it is prudent to invest in the JM Financial Products NCD issue given the low interest rate profile of other competing investment options. He seems to have ticked most of the right boxes like high credit rating, security, attractive interest rates to match investors’ risk profile.



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