Chemmanur Credits and Investments Limited, a gold loan-focused NBFC, has come up with its latest secured Non-Convertible Debenture (NCD) issue in August 2026. The company is offering interest rates of up to 12% per annum with tenures ranging from 400 days to 72 months. The NCD issue has been assigned a BBB/Stable credit rating by India Ratings & Research. Should investors consider investing in the Chemmanur Credits and Investments NCD August 2026 issue? Let us review the issue details, interest rates, company financials, credit ratings, positives, risks and conclude whether these NCDs may suit your investment requirements. The details in this article are based on the company’s prospectus.
About Chemmanur Credits and Investments Limited
Chemmanur Credits and Investments Limited (CCIL) was incorporated in 2008 and is registered with the Reserve Bank of India as a Non-Deposit Taking Non-Banking Financial Company (NBFC).
The company primarily provides gold loans by accepting household gold jewellery as collateral. Apart from gold loans, it also offers microfinance loans, business loans, personal loans, money transfer services and distributes third-party insurance products.
As of June 30, 2026, the company operated through 302 branches spread across Kerala, Tamil Nadu, Karnataka, Maharashtra, Telangana and Andhra Pradesh with over 1,260 employees. It is part of the Boby Chemmanur Group, which has a presence in jewellery retailing across India, the Middle East and the USA.
Chemmanur Credits and Investments NCD Aug 2026 – Issue Details
| Particular | Details |
|---|---|
| Issue Opens | 4-Aug-2026 |
| Issue Closes | 17-Aug-2026 |
| Security Type | Secured Redeemable Non-Convertible Debentures |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 |
| Base Issue Size | ₹75 Crores |
| Green Shoe Option | ₹75 Crores |
| Total Issue Size | ₹150 Crores |
| Listing | BSE |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Market Lot | 1 NCD |
| Basis of Allotment | First Come First Serve (FCFS) |
| Lead Manager | Vivro Financial Services Pvt. Ltd. |
| Registrar | KFin Technologies Ltd. |
| Debenture Trustee | Mitcon Credentia Trusteeship Services Ltd. |
The issue consists of secured NCDs and is proposed to be listed on BSE after allotment. As allotment is on a First Come First Serve basis, investors generally prefer applying early if they wish to participate.
Chemmanur Credits and Investments NCD Aug 2026 Interest Rates
| Series | Tenure | Interest Payment | Coupon Rate | Effective Yield |
|---|---|---|---|---|
| I | 18 Months | Monthly | 10.25% | 10.75% |
| II | 24 Months | Monthly | 10.80% | 11.35% |
| III | 36 Months | Monthly | 11.25% | 11.85% |
| IV | 61 Months | Monthly | 12.00% | 12.68% |
| V | 400 Days | Cumulative | NA | 9.25% |
| VI | 24 Months | Cumulative | NA | 11.00% |
| VII | 72 Months | Cumulative | NA | 12.25% |
Investors looking for regular income may consider the monthly interest options, whereas those who do not require periodic cash flows may evaluate the cumulative options based on their investment horizon.
Credit Rating of Chemmanur Credits NCD
The NCD issue has been assigned:
| Rating Agency | Rating | Outlook |
|---|---|---|
| India Ratings & Research | BBB | Stable |
According to India Ratings, a BBB rating indicates a moderate degree of safety regarding timely servicing of financial obligations. At the same time, such instruments carry moderate credit risk compared to higher-rated debt instruments like AA or AAA rated NCDs. The rating is valid as on the date of the prospectus and is subject to periodic review by the rating agency.
Credit Rating Trend in the Last 3–5 Years
Based on the information available in the offer document, the current public issue has been assigned an IND BBB/Stable rating by India Ratings & Research.
The prospectus does not provide a historical rating migration table covering the previous three to five years. Hence, investors may monitor future rating actions by the rating agency during the tenure of these NCDs, as ratings can be upgraded, downgraded or revised depending on the company’s financial performance and business conditions.
Objects of the Issue
According to the prospectus, the company proposes to utilize the net proceeds from the issue primarily for:
- Onward lending activities
- Financing business operations
- Repayment or prepayment of principal and interest on existing borrowings
- General corporate purposes
Chemmanur Credits and Investments Limited Financials
The company’s recent financial performance indicates steady growth in its business operations. One notable aspect is the sharp improvement in profitability during FY2025-26.
| Particulars (₹ Crores) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Total Assets | 635.05 | 693.18 | 865.09 |
| Total Income | 106.15 | 141.74 | 179.74 |
| Profit After Tax | 1.72 | 2.48 | 20.07 |
| Net Worth | 81.25 | 105.06 | 132.63 |
Observations
- Total assets increased from ₹635 Crores to ₹865 Crores in the last three financial years.
- Revenue has shown healthy growth year after year.
- Profit after tax increased significantly during FY2025-26.
- Net worth has steadily improved over the last three years, indicating strengthening capital base.
The financial information above has been extracted from the company’s restated consolidated financial statements included in the prospectus.
Why One May Consider Investing in Chemmanur Credits and Investments NCD Aug 2026
Like every NCD issue, this one has its own positives. Investors may evaluate the following factors before making an investment decision.
1) Attractive Interest Rates
The company is offering effective yields of up to 12.68%, which are considerably higher than most bank fixed deposits.
2) Secured NCD Issue
These are secured NCDs. As per the prospectus, the company proposes to maintain security cover for the debentures, providing an additional layer of comfort compared to unsecured debt instruments. However, investors should note that secured does not eliminate credit risk.
3) Improving Financial Performance
The company has reported growth in assets, income, net worth and profitability during FY2026, indicating improvement in its operating performance.
4) Established Gold Loan Business
Gold loans continue to remain one of the relatively resilient lending segments in the NBFC industry. The company has over 300 branches and has been operating in this segment for several years.
5) Listed on BSE
Since the NCDs are proposed to be listed on BSE, investors may get an exit opportunity before maturity through the secondary market, subject to liquidity and prevailing market prices.
Why Investors Should Exercise Caution
Every investment carries risks, and NCDs are no exception.
1) Moderate Credit Rating
The NCD carries a BBB/Stable rating.
While BBB is an investment-grade rating, it is below AA and AAA rated instruments. Investors seeking maximum safety may prefer higher-rated debt instruments.
2) NBFC Business Risks
The company operates as an NBFC. Such businesses are exposed to:
- Credit risk
- Collection risk
- Regulatory changes
- Economic slowdown
- Gold price fluctuations affecting collateral values
3) Liquidity Risk
Although listed, NCDs may not always witness sufficient trading volumes on the stock exchange. Investors planning to exit before maturity may not always get the desired price.
4) Interest Rate Risk
If market interest rates increase after investment, prices of existing listed NCDs may decline in the secondary market.
How to Apply for Chemmanur Credits and Investments NCD
Retail investors can apply through several channels.
- Internet banking ASBA facility offered by eligible banks.
- Stock brokers providing online debt issue applications.
- UPI-enabled applications wherever permitted.
- Registered intermediaries participating in the public issue process.
Applicants should have:
- PAN
- Demat Account
- Bank Account
- Sufficient funds for ASBA/UPI mandate
The minimum investment is ₹10,000 (10 NCDs).
Chemmanur Credits and Investments NCD Aug 2026 Review – Should You Invest?
Chemmanur Credits and Investments has reported improving financial performance and is offering attractive interest rates of up to 12% per annum. The issue also consists of secured NCDs, which may appeal to investors looking for fixed-income opportunities.
However, investors should also note that the issue carries a BBB/Stable credit rating, indicating moderate credit risk. Compared to AAA or AA-rated NCDs, this issue involves relatively higher credit risk in exchange for higher yields.
Investors who are comfortable with moderate credit risk and are looking for higher fixed-income returns may evaluate this issue after understanding the risks mentioned in the prospectus. Conservative investors who prioritize capital safety over returns may consider comparing this issue with higher-rated NCDs, bonds or other fixed-income investment options before taking a decision.
This article is intended purely for informational and educational purposes and should not be construed as investment advice or a recommendation to invest or avoid investing in this NCD issue.
Frequently Asked Questions (FAQs)
1) What is the issue opening and closing date of Chemmanur Credits NCD Aug 2026?
The issue opens on 4 August 2026 and closes on 17 August 2026, unless closed earlier.
2) What is the minimum investment amount?
The minimum investment is ₹10,000, equivalent to 10 NCDs.
3) What is the maximum interest rate offered?
The highest coupon offered is 12.00% per annum, with an effective yield of up to 12.68% depending on the selected series.
4) Are these secured NCDs?
Yes. The issue consists of secured redeemable non-convertible debentures as described in the prospectus.
5) What is the credit rating?
The issue has been rated IND BBB/Stable by India Ratings & Research.
6) Will these NCDs be listed?
Yes. The company proposes to list the NCDs on the BSE.
7) Can investors sell these NCDs before maturity?
Yes, subject to listing and availability of buyers in the secondary market. The sale price may be above or below the issue price depending on market conditions.
