Indiainfoline Investment is coming out with a debenture of 5 years duration – at an attractive rate of 11.9%p.a.
The short question is ‘Should you invest in these debentures?’
Well the Shriram group (Chennai based) is coming out with a debenture at a coupon rate of 12.3% p.a. in about a weeks time.
So should you invest – it is a call that you have to take. Day before yesterday I got a call saying there was a premium available on listing – currently it has just vanished.
My take is: If you trust the management and are willing to take a 5 year call (you run the risk of there being an illiquid market) invest. If you are hoping to make money on listing, forget it.
If you are hoping to hold – keep a small amount of investment here …and invest more in the Shriram offering. Chances are as soon as the Shriram announcement hits the market, the Indiainfoline premium will change into a discount…
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