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Growpital Agricultural investment
- Thread starter nadeem
- Start date
rohitnsync
TF Select
Yes
oooo this is very interesting
any review?
rohitnsync
TF Select
There are various investment options (based rate of return) with their respective minimum investment amount. I went ahead with the 16% returns plan and a minimum 2 lac investment requirement. At the time, there was also an investment option of 17% rate of return but required a minimum investment of 10 lac. Coming to the payouts, you receive interest-only amount quarterly (i.e. without the capital) You will receive your invested capital in the final payout of the tenure. So far, I am satisfied with my investment. I hope it helps.
Could you please shed some light on these pointers, also other factors to be considered before investing. Thanks!
modes of investing (monthly/yearly)
investing payment methods (CC/upi/bank)
Returns payout frequency (monthly/yearly)
following
AritraSaha
TF Prestige
The lock-in period pretty high in growcapital. Although you tax liability become 0.
Ya thats understood and frankly looking for longer term investments only. something a bit of low to medium risk instrument. kinda fits the bill just wondering why its not something people talk about more often, if its just a lack of understanding or its high risk being masked as managed risk.
AritraSaha
TF Prestige
Doing agriculture is a tough business in India. Few subsidy, Bad infra, little to no support by the govt in bad time.
Ex
Tomato was ₹2 few months back.
And now-
This is not low or medium risk by any stretch of imagination. Also, there is nothing guaranteed about their guaranteed fixed return. They say so on their website in several different words.
There is 0 liquidity.
There is no capital guarantee.
They mention something about an LLP document on their website. I am not sure what that is so if someone here can explain what they do then i might be able to figure out that aspect. Off the top of my head, it seems like a legal and compliance nightmare.
Any random mid cap mutual fund can give you that 16% return held for 3+ years.
Thanks just what I wanted to hear.
So let's talk in a bit more detail, their sales team (and the founder) pitches it as low to mid hence those words, logic is their diversification in terms of crops and states etc etc insurance coverages etc.. let's say they know what they are doing, just benefit of doubt for doing something innovative here.
And let's correct a small thing the money is tied up for 1 year the investment duration generally is for upto 3 years and you can pull it out before as well, they just subtract the quarterly payouts that you have gotten till then.
The obvious charm is the tax free nature of the return here with no upper limit mentioned amywhere (pls don't mention elss here those are well... limited in nature)
The real catch is as you also pointed out the LLP thing, from my very limited understanding you buy partnership into a LLP firm which owns lands thereby granting you profits from the produce of said lands...... But when I hear partnerships my brain goes to the fact that is profits are shared so are losses and I'm very curious if someone here has seen one of those from growpital. Let me email them and see if they can share a sample agreement.
PS: I'm glad to have found a place to discuss nuances such as these with experienced people and learn new stuff here.
krishc
TF Ace
I'm member of the two growpital groups in telegram, one is the official one hosted by growpital team, another by independent investors like us.
although, TBH, I've not invested yet in growpital
I was recommended by one of my batchmate and colleague and I've opened an account with them and joined these groups to gather as much info as I can, before committing any money into it.
If it is allowed, I can share links of those groups.
although, TBH, I've not invested yet in growpital
I was recommended by one of my batchmate and colleague and I've opened an account with them and joined these groups to gather as much info as I can, before committing any money into it.
If it is allowed, I can share links of those groups.
please do! If it helps in understand their offering a bit more should be alright (otherwise the mods can just delete it) 🙂
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krishc
TF Ace
Thanks. Just saw their LLP Agreement and some of the discussion in the group. What a joke!!!
krishc
TF Ace
Honestly, it is not feasible to provide explanations here. You will need to consult your lawyers for this.
On a generic note, I can say that there is absolutely no structure or recourse for the investors on how the LLP shall function. Why would someone give away such rights? The closest structure I can think of is the Debenture Trust Deeds executed while issuing NCDs. You can google them. I have attached a random one that I came across. You will yourself be able to make out all sorts of covenants that will typically be required to manage investments from public.
This brings me to the next one... they are raising capital from public. They don't seem to have any registrations with either SEBI or RBI.
Oh, and you sign the LLP agreement! This has its own set of compliance headaches. Who ensures compliance? Do you get indemnity? You designate someone else as the authorised signatory. Is this limited authorisation? Where is this documented?
How are meetings conducted? How are investors represented?
There is no personal liability of the Designated Partners here by design. There are no representations or warranties. Big red flags. (Who negotiated this?)
There could be a hundred more questions. Obviously, I do not have all the information so may be not all of them are relevant. You be the judge of that. But if it was me I would never sign their clause 3.3 where you provide perpetual rights on using your name in any manner whatsoever without prior consent. (I have picked the least troublesome clause as an example)
https://www.bseindia.com/corporates...rior/NCD DTD 11th Aug 2021_20210816172742.pdf
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