360 ONE Prime NCD: Key Details and Considerations for Investors

3 Jan 2024 , 03:19 PM

Established in 1994, 360 ONE Prime Limited operates as an asset management firm, providing a range of services including portfolio and wealth management, treasury functions, consulting, financial planning, and investment supervisory services. It functions as a subsidiary of 360 ONE WAM.

Headquartered in Mumbai, the company was initially known as IIFL Wealth Prime Limited but underwent a rebranding in 2022, adopting the name 360 ONE Prime Limited. The name change reflects a holistic perspective (360) and a customer-centric approach (ONE).

360 ONE Prime Limited has a substantial presence, operating in 15 states domestically and maintaining an international footprint in five countries. As of the financial year 2023, the company reported total revenue from operations amounting to Rs 673.66 crore. Additionally, as of September 30, 2023, the company’s loan book stands at Rs 5,310 crore.

The company is launching debt offer, and the subscription period for this offer will be from January 11 to January 24, 2023. Click here to apply in the 360 ONE Prime Limited NCD. 

The company is raising Rs 1000 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received rating of “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.

The company will use the net proceeds from the issue for the purpose of onward lending, financing /refinancing the company’s existing indebtedness, and debt servicing (payment of interest and repayment/prepayment of interest and principal of existing borrowings of the company and other general corporate purposes.

360 ONE Prime Limited has allotted 20% each to institutional and non-institutional investors and 30% each to HNI and retail investors. 

These NCDs have tenures of 18, 24, 36 and 60 months. It offers coupon rates from 8.90% to 9.75% based on the selection of investors. The frequency of interest payments will be monthly or annually basis. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of 360 ONE Prime Limited:

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8
Frequency of Interest Payment	Monthly	Annual	Monthly	Annual	Monthly	Annual	Monthly	Annual
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	18 Months	18 Months	24 Months	24 Months	36 Months	36 Months	60 Months	60 Months
Coupon (% per Annum)	8.91%	9.22%	9.03%	9.41%	9.21%	9.61%	9.26%	9.66%
Effective Yield (% per Annum)	9.26%	9.27%	9.40%	9.40%	9.60%	9.60%	9.65%	9.65%
Amount on Maturity (In Rs.)	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00	Rs 1,000.00

 

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/jan-2024/1704172490079.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

360 ONE Prime Limited (formerly known as IIFL Wealth Prime Limited) NCD is managed by JM Financial Limited, A.K. Capital Services Limited and IIFL Securities Ltd. Link Intime India Private Ltd is the registrar of NCD and Beacon Trusteeship Limited is debenture trustee to the same.