Arka Fincap's NCD offer to open on December 7 — should you invest?

At least 75% of the funds raised through this tranche I issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the company, Arka Fincap said. The balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25% of the amount raised in the tranche I issue, in compliance with the Securities and Exchange Board of India (SEBI) regulations.

These NCDs will be traded in dematerialised form. The allotment will be done on a first come first served basis. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on a proportionate basis.

Arka Fincap Limited's NCD issue comes with a strong credit rating of CRISIL AA-/Positive by CRISIL Ratings. This signifies a high degree of safety regarding timely servicing of financial obligations. As secured, listed, and redeemable non-convertible debentures, these investments are backed by the company's assets, ensuring a layer of security for investors.

However, it's essential to assess personal risk tolerance and investment goals. External market factors and economic conditions can impact the performance of NCDs. Investors should conduct thorough research or seek advice from financial experts.