This Kerala-based NBFC's NCDs promise to double your money in 75 months. Should you invest?

livemint.com:

non-banking financial corporation (NBFC) has launched a fresh issue of secured redeemable non-convertible debentures, which will close on May 17. The face value of NCD is ₹1,000. The minimum application requires investors to invest 10 NCDs, i.e., 10,000, in multiples of ₹1,000.

The issue is meant to raise ₹50 crore with an option to retain over-subscription up to ₹50 crore, aggregating up to ₹100 crore. The issue has been given an ‘Ind BBB’ rating with a ‘stable’ outlook by India Ratings & Research. India Ratings website shows that a BBB rating is given to securities that are considered to have a 'moderate degree of safety' regarding the timely servicing of financial obligations.

Such securities carry moderate credit risk. The credit rating above BBB is ‘Ind A' and below this is ‘Ind BB’. It is noteworthy to mention that high-risk debt investments typically carry a higher interest rate, and conversely, low-risk investments offer lower interest rates.

ALSO READ: Top 5 NBFCs offering over 7% interest rate on their fixed deposits; check list here Although the money will double in 75 months, investors can also invest for a short duration. If you invest for 367 days or 18 months, the debentures accrue interest at the rate of 10.50 per cent for both the general population and senior citizens. When the investment is made for two years or 24 months, the NCDs offer an interest of 10.60 per cent per annum for the general population as well as senior citizens.