360 ONE Prime's maiden NCD issue opens: Should you invest?

The company will maintain a minimum security cover of at least 1.05 times (1.05x) of the outstanding principal amounts of the NCDs and all interest due and payable thereon at all times until the maturity date, 360 ONE Prime said.

The NCDs have a face value of ₹1,000 each, aggregating up to ₹1,000 crore.

The company has proposed to raise funds for the purpose of onward lending, financing/refinancing the existing indebtedness of the company, and/or debt servicing and general corporate purposes.

The NCDs are offering a coupon of up to 9.66% per annum (under Series VIII).

They are available in tenures of 18 months, 24 months, 36 months and 60 months, with monthly and annual interest payment options across eight series.

The NCDs proposed to be issued under tranche I are rated AA/stable by CRISIL Ratings and AA (Stable) by ICRA, which indicate that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.

Commenting on the NCD issue, Karan Bhagat, Founder, MD & CEO, 360 ONE, said, “We have an experienced management team. Our loan approval and administration procedures, collection and enforcement procedures are designed to minimise delinquencies and maximise recoveries."

Himanshu Jain, CEO and Whole-time Director, 360 ONE Prime said, “Our company has credit ratings from agencies including CRISIL, CARE and ICRA. We believe our credit rating allows us to borrow funds at competitive rates from diverse sources.”

The lead managers to the issue are JM Financial, AK Capital Services and IIFL Securities. The NCDs are proposed to be listed on BSE Limited.

BSE Limited has been appointed as the designated stock exchange.

IIFL Securities, involved in the marketing of the issue, is deemed an associate of the issuer, following regulatory guidelines.

Investors interested in this opportunity should carefully assess their investment objectives, risk tolerance, and the terms of the NCDs to determine if they align with their financial strategy, experts say.

Consulting with a financial advisor or conducting thorough due diligence before making any investment decisions is recommended, they say.