India Infoline Finance ( IIFL) non-convertible debenture (NCD) issue got good response and has managed to collect over Rs 110 crore on first day of subscribing to the issue.
However, below are the reasons due to which investors should not subscribe the issue:
SPECIFIC TERMS FOR EACH SERIES OF BONDS
- It is unsecured NCD. It means there is no collateral against these bond. This makes this issue little riskier. There are other secured NCDs available in the market.
- Sectors in which IIFL is operating are not that promising. They are not market leader in any of them.
- It will double your money in 6 years. But there are NCDs from Muthoot Finance can double your money in 5.5 years. Those NCDs still can be bought through stock exchanges (BSE / NSE).
- Issue got rating of AA- from both Crisil and ICRA.