Hawkins Cookers FD is an unsecured deposit and carries risk in comparison to bank fixed deposits which are insured for up to Rs 5 lakh. And for higher returns investors need to be highly cautious as in chance of any default by the company at any point in time there is no recourse available to them.
Here is detailed finer point of the investment options:
Hawkins Cookers is a leading cookware manufacturer in the country and has manufacturing under brand names of Hawkins, Futura, Contura, Hevibase, Big Boy and Ventura.
The subscription for the fixed deposit will begin on September 18, 2020 and close on September 30,2020. For the 3-year tenure, the FD will be offering 9% rate per annum. While for 1-year the return will be 8.5% and for 2 years it shall be 8.75%.
Through the scheme, the company has been authorized to amass a sum of Rs. 48.88 crore. The minimum deposit amount towards the scheme can be Rs. 25000 and in multiples of Rs. 1000 thereafter.
Issuance objective: The sum mopped up shall be used for meeting working capital requirements as well as for meeting other contingencies.
Rate of interest:
Scheme A interest compounded monthly
Tenure Interest rate
12 months 8.5%
24 months 8.75%
36 months 9%
Scheme B Non-cumulative
Here the interest is paid out in half-yearly mode.
ICRA has rated the deposits as MAA (Stable) indicating chances of deposits are low as well as have high credit quality. Now, as the credit quality was assigned in July, it is likely that its financial position have changed since then.
Should You Invest In Hawkins Cookers Fd for high return?
Here at this point with lot of uncertainty one should aim at preserving capital and if only one understands the risks associated with such an investment, one can invest in such an option only to diversify one's debt portfolio. Also, it shall be best to invest for a shorter tenure in such FDs as anytime the FDs can see a downgrade and hence may carry a higher risk.