SMC Global Securities Limited Zero Coupon 2Y Bond yield has risen over 31%. Its rated A. None of the other corp bond is even remotely near that yield. What is happening?
Where are you seeing this info?
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Paytm money
Ohh not surprising… they are dumb people and have no idea what they are doing.
Never trust them 
Did some digging, and looks like something like this you saw and got excited
So if you look at data it is saying you invest around 1300 and you are getting yield of 32%.
Problem - looked up prospectus of this issue and this 2 year bond is going to Rs. 1210 on maturity
So if you invest 1300 to buy this bond, forget yield, you will be making loss
I checked BSE website and it appears some fools have actually bought it at that price. Feel bad for them, but they are going to get harsh reality check.
Bottom line, do your own yield calculations. Don’t trust those apps. And never trust paytm money
Thanks. Appreciate you taking the time to look into this.
Just one clarification… based on last closing price…
Price: 1299
Yield: 32.35%
Maturity: 24 Apr 27
At the maturity you wont just get the principal (Rs. 1000)
You’ll get Rs. 1000 + Coupon (Rs. 1210) = Rs. 2210 on the investment of Rs.1299
With 10% TDS, you will still get Rs. 2089 on investment of Rs. 1299
I know its a zero coupon bond.
NO.
You’ll get Rs. 1000 + (Rs. 210) = Rs. 1210 on the investment of Rs.1299
The redemption value at the end of 2 yrs is ₹1,210, this includes the face value of ₹1,000
The actual return across 2 years will be ₹210 (1210-1000), making the effective yield 10% p.a.
₹1000*(1.10)^2 = ₹1,210
So, if you invest ₹1,299 now, your effective yield will be negative, not 32.35%, as you will incur a loss of ₹89 per bond, unless you can dump it on a greater fool, who is willing to buy it at a higher price.
ig you were ready with the data 
; just waited to know how op got the info
bro…
If you click on invest on the Paytm money app, it shows you the complete breakup of the money you will receive from the bond.
Lol no. I had no idea. I only started looking at it once he said Paytm Money
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Nope, unfortunately that is not the case.
Offering is pretty clear, in total you will get Rs. 1210 on redemption.
Can you post a snap of what breakup they paytm money is showing?
My account is inactive and can’t go beyond first screen.
Anyways I have also written to paytm helpline to explain how they are calculating 32%
And knowing their track record, I am pretty confident that they have messed up.
Please do not invest thinking you are getting 32%
Wow, I knew they were dumb. Never realized they are idiots.
This definitely wrong. DO NOT buy this.
Go look at prospectus filed by company with SEBI
SEBI | SMC GLOBAL SECURITIES LIMITED - Prospectus
page 251 has details of each NCD. Clearly mentions maturity value as 1210, there is nothing else.
Still not convinced? check further … issue price is 1000 rs and effective yield shown is 10% (at time of issue in Apr 2025)
So now think, a bond issued for 1000 was giving yield of 10% at time of issue. Same bond if I buy at 1300, can it ever give 32%?
That seems right.
How can they show such incorrect info on the portal. Shouldnt this be flagged?
I wrote to the helpline seeking clarification.
I’ve bought a piece for about 1300 before posting here just to see what its about.
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