Investing in NCDs can be a great way to diversify your portfolio, but before you make any decisions, it's important to do your research. In this article, we'll be looking at the InCred Financial Services Limited NCD IPO that is set to launch in January 2023. We'll provide an overview of what the NCDs are, their ratings and benefits, and whether or not they are a good investment opportunity for you. Read on to find out more!
Introduction to InCred Financial Services Limited
InCred Financial Services Limited is an Indian non-banking financial company (NBFC) that provides a wide range of financial products and services. The company was founded in 2016 by Bhupinder Singh and it is based in Mumbai, India.
InCred offers a variety of financial products and services, including personal loans, home loans, business loans, and education loans. The company also provides loan against property and loan against shares, along with working capital and term loan facilities to small and medium enterprises (SMEs).
InCred Financial Services Limited operates through several subsidiaries and its primary business is to provide loans to small and medium-sized businesses, retail customers, and microfinance institutions. The company also provides a range of wealth management and insurance products through its subsidiary, InCred Wealth Management Limited.
The company has grown rapidly and has disbursed over Rs. 10,000 crore of loans since inception. InCred has a strong focus on digital lending and uses technology extensively to reach its borrowers.
InCred has raised equity from well-known investors such as Tiger Global Management, ChrysCapital and True North. The company plans to use the proceeds from the NCD issue to grow its loan book further and expand its operations.
InCred Financial Services is known for its innovative approach to lending, and its focus on providing customized solutions to its customers. The company's mission is to empower individuals and businesses to achieve their financial goals through responsible lending, and it's also known for its strong corporate governance and commitment to responsible lending practices.
It's worth noting that the information provided is based on public information and the knowledge cut-off date is 2021, so it may be possible that the company's information has been changed, and it's always a good idea to check the current information before making any investment decisions.
What are Non-Convertible Debentures?
Non-convertible debentures, or NCDs, are bonds that cannot be converted into equity shares. NCDs are a type of debt instrument that companies use to raise capital by borrowing from investors. NCDs typically have a fixed interest rate and a maturity date, at which point the borrowed amount must be repaid.
Companies often use NCDs to finance expansion projects or other investments. NCDs can be traded on exchanges, and they may be attractive to investors who are looking for a higher return than what is available from fixed-income investments such as government bonds.
However, NCDs also carry more risk than other types of debt instruments because there is no collateral backing the loan. If a company defaults on its NCD payments, investors could lose their entire investment. For this reason, it is important to research a company carefully before investing in its NCDs.
Benefits of Investing in NCDs
1. Investing in NCDs can provide you with high returns.
2. NCDs are a safe and secure investment option.
3. NCDs offer you the flexibility to choose the tenure of your investment.
4. You can get tax benefits on your investment in NCDs.
InCred Financial Services Limited IPO: Should You Invest?
InCred Financial Services Limited is a Mumbai based non-banking financial company (NBFC) which was founded in the year 2010. The company provides secured and unsecured loans to retail, small and medium enterprises (SMEs), corporates, and agricultural customers. As of March 2020, InCred had a network of 156 branches across 27 states and union territories with a loan book of Rs 22,647 crore.
Whether or not you should invest in the initial public offering (IPO) of InCred Financial Services Limited is a decision that should be based on your personal investment goals, risk tolerance, and financial situation. It's important to conduct your own research and analysis before investing in any IPO.
Here are a few things to consider before investing in InCred Financial Services Limited IPO:
Financials: Review the company's financial statements, including its income statement, balance sheet, and cash flow statement, to get a sense of the company's profitability and financial health.
Business model: Understand the company's business model and its competitive advantages. Research its target market and the industry it operates in, and assess its growth prospects.
Management team: Research the company's management team and board of directors. Look for experienced professionals with a track record of success in the industry.
Valuation: Compare the company's valuation to that of its peers to see if it is overvalued or undervalued.
Risk: IPO's are considered to be high-risk investments as they are untested in the public markets and the stock performance can be highly volatile in the short term.
It's important to keep in mind that past performance is not a guarantee of future results, and investing in any IPO involves risk. Before making any investment decisions, it's always a good idea to consult with a financial advisor and check the current regulations.
Risk Factors and Factors to Consider Before Investing
When it comes to investments, there is no one-size-fits-all approach. Each individual has different risk tolerance levels and financial goals. That being said, there are certain factors that every investor should consider before making any type of investment, whether it be in stocks, bonds, mutual funds, real estate, or other assets.
Some of the key factors to consider before investing include:
1) Your risk tolerance level: This is arguably the most important factor to consider before making any type of investment. Are you comfortable with taking on more risk for the potential of higher returns? Or would you prefer a more conservative approach with lower returns but less risk? Knowing your risk tolerance level will help you choose the right investments for you.
2) Your financial goals: What are you hoping to achieve with your investments? Are you looking to grow your wealth over the long term? Or are you trying to generate income in the short term? Your financial goals will dictate what types of investments are right for you.
3) The current market conditions: When it comes to investing, timing is everything. You want to make sure that you're buying assets when they're relatively low and selling when they're high. Pay attention to economic indicators like interest rates, inflation, and employment figures to get a sense of where the market is headed.
4) The fees associated with an investment: Always remember that there are fees associated with every investment, including stocks, bonds.
Alternatives to the NCD IPO
1.1 InCred Debt Fund
InCred Debt Fund is an alternative to the NCD IPO for investors who are looking for a fixed income investment. The fund offers monthly dividends and aims to provide capital appreciation over the long term. The fund invests in a portfolio of AAA rated corporate bonds and government securities.
1.2 InCred Money Market Fund
InCred Money Market Fund is another alternative for investors seeking a fixed income investment. The fund offers daily liquidity and aims to provide stability of capital by investing in short term debt instruments such as treasury bills, commercial paper and certificates of deposit.
1.3 InCred Equity Fund
For investors who are looking for growth potential, InCred Equity Fund is an alternative to the NCD IPO. The fund invests in a diversified portfolio of large cap stocks and aims to provide long term capital growth.
Conclusion
In conclusion,
InCred Financial Services Limited NCD IPO is an interesting opportunity for investors looking to diversify their portfolios. The company has a solid track record of success and the interest rates offered are competitive with those available from other companies in the same sector. Additionally, investments made prior to January 2023 will be eligible for tax benefits that can help offset some of the costs associated with investing in this security. Ultimately, it is up to each individual investor to decide if they believe InCred Financial Services Limited's offering is right for them and if they should invest when the IPO arrives next year.
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