NHAI’s new NCDs offers nearly 8% returns; Should you invest? MintGenie asks 2 financial advisors

The NHAI has launched its new NCDs issue to raise up to Rs 1500 crores. Suresh Goyal, MD & CEO of National Highways Infra Investment Managers said, “The NCD has three different tenures, with three different face values as well as maturity and redemption period with maximum redemption period being 25 years. Goyal said, “The institutional investors including both foreign and domestic players who have parked their money in NHIT have shown keen interest in holding on to their shareholding,” adding, “We will go forward with the next two rounds of fundraising before looking to become a publicly listed InvIT.” The BSE Limited, which serves as the issue's designated stock exchange, and the National Stock Exchange of India would both list the NCDs. For 25 years of maturity, with a staggering redemption by face value for each STRPP as per the ‘Principal Redemption Schedule and Redemption Amounts’, it will be paid in eight annual payments of Rs 50 each starting from the 18th anniversary until maturity.” Are these NCDs worth investing in? Pratibha Girish, Founder, Finwise Personal Finance Solutions said, “In today’s environment when debt mutual funds give decent yields, I would not recommend NCDs for a small differential in yields.