On September 15, Hawkins Cookers Ltd opened pre-registration for its Fixed Deposit (FD). The FD program is offered in 3 tenors – 12 months, 24 months and 36 months. The company offers interest rates of 7.5%, 7.75% and 8% respectively on the three tenors. For the payment of interest, the company offers two options – semi-annual and cumulative. In semi-annual payment, you receive interest twice a year while, in the cumulative option, you receive interest at the end of the term. The cumulative option allows the interest portion to also compound monthly and therefore your return increases to 8.3%. Existing FD holders can also renew their FDs. To do this, they must express their interest in renewing online at least 10 days before the FD expires.
Hawkins Cooker FD is rated AA Stable by the ICRA and has a long history in the market. It was offering interest rates up to 10.5% in 2019. This rate fell to 9% in 2020 and has now reached 8%, reflecting the overall decline in interest rates in India. However, the rate offered is at a substantial premium to bank interest rates of 5-6%. As of September 2019, the company had FDs worth ??22 crores in his books and was allowed to lift ??6.76 crore from its shareholders and 16.90 crore from the general public. As of July 29, the existing FD figure had risen to 34 crore, leaving the company the opportunity to raise 28.17 crore from its shareholders and the general public. The company’s after-tax profit has also increased sharply in recent years, from ??54.22 crore in fiscal year 19 to ??80.64 crore in FY21, despite the Covid-19 pandemic. It has a market capitalization of ??3,316 crores as of Sept. 15, according to data from Value Research.
The pre-registration process is completely online. Interested parties will need to authenticate their mobile phone number using a one-time password (OTP). After that, a screen will appear where they will have to enter details such as name, PAN number, address and requested FD amount. The company will then assign a pre-registration number if there is a sufficient amount available that has not already been assigned. If the available limits are insufficient, the company will assign the applicant a waiting list number. The link for the FD app is here.
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