Nivesh.com Logo - Best Online Platform for Mutual Fund Investment
English Hindi
Chat with Nivesh.com
English Hindi

Arthmate NCD July 2021

Arthmate Non Convertible Debentures July 2021

About the Issue:

We are launching Non Convertible Debentures (NCDs) in collaboration with Arthmate (arthmate.com), where the funds will be used to source the capital needs of Bharat Pe platform to fund their borrowers. The NCDs will provide an attractive rate of returns and shorter maturity period the money will be used to provide the business loan to the merchants of Bharat Pe and there is a FLDG agreement with Bharat pe which will  protect arthmate against  NPAs.

What is FLDG (First Loan Default Guarantee): Through this arrangement, in case there is an NPA, the first hit is always taken by the originator. It is an assurance that players sourcing loans have some skin in the game and aims to ensure that borrower quality is not diluted.

How the Funds will be used by Bharat Pe:

The proceeds received from the Arthmate will be used to provide business loans to the merchants of Bharat Pe. The loan will be given to the merchants on the basis of their daily average transaction, Business volume and after doing a proper due diligence, generally there is a loan tenor of 1-90 Days and money will be received through EDI (Equated daily installments) basis.

We will be sharing the prospectus and offer related documents soon


Basic Details:

Instrument NCDs – Mamta Projects Pvt Limited (Arthmate
Issue Size Rs. 2 Crore
Interest 13.5% p.a
Interest payment cycle Monthly
Maturity 15 months
Issue Open Date 12-July-2021
Issue Close Date 20-July-2021
Minimum Investment Rs. 2 Lakh
Mode of Purchase Dmat & Physical
Maximum Number of Investors 49
Utilisation of Money Funding to Bharat Pe platform borrowers
Security FLDG (First Loan Default Guarantee) Agreement With Bharat Pe
Allotment First come first basis
Liquidity There is no liquidity of the investment before the maturity date. The entire amount of investment will be repaid by issuer on the maturity date

Suitability:

  • Investors seeking High returns and monthly interest payments along with ower maturity of an instrument

Taxation

Interest income will be taxed under the head of “ Income from other sources” and the tax rate will be applicable as the individual tax slab of an investor.

There will be no capital gain or Loss in these NCDs if the investors have invested till maturity of the instruments.

Risk Factors:

There are following risk factors are involved with this NCD issue

Type of RiskDescriptionWhether  Applicable to this issue
Credit RiskRisk of default by an issuer of debt securitiesYes
Interest Rate RiskRisk of volatility in yields due to change in rates by central bankNo
Liquidity RiskRisk of investment not being liquidated before maturity No

Note: The loans provided by the Issuer are unsecured and if the Issuer is unable to control the level of, nonperforming loans (“NPAs”) in the future, or if the loan loss reserves are insufficient to cover future loan losses, the financial condition of the Issuer and results of operations may be materially and adversely affected.

However, the FLDG agreement may help the investors to mitigate the risk of NPAs to the originator of loan and to ensure the good credit quality.

Disclaimer: Investment in NCDs may contain various risks, please read offer documents carefully and invest only on the basis of information contained in the  prospectus.
X
To know more about Arthmate Non Convertible Debentures, Fill the form below: