Chemmanur Credits and Investments is coming up with secured NCD bonds now which would open for subscription on December 31, 2024. Chemmanur Credits and Investments is a non deposit taking NBFC company in India. The NCD interest rates for Chemmanur Credits and Investments NCD are up to 12.1% and yield is up to 12.68%. These NCDs are offered for 367 days to 70 months tenure. These interests are paid either monthly, yearly or on maturity depending on the option chosen. Should you invest in Chemmanur Credits and Investments NCD Dec-2024?
About Chemmanur Credits and Investments Limited
Company is a non-deposit taking, non-banking financial company registered with the RBI.
It is primarily engaged in the gold loan sector lending money against the pledge of household gold jewellery in the state of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra.
They also provide Microfinance Loans, business and personal loans, money transfer services and distribution of third party insurance products. They have been engaged in the lending business for more than 13 years and are based in Kerala, India.
Chemmanur Credits and Investments NCD Dec-2024 – Issue Details
Here are the NCD issue details.
| Subscription opening Date | 31-Dec-24 |
| Subscription closure Date | 13-Jan-25 |
| Issuing Security Name | Chemmanur Credits and Investments Limited |
| Security Type | Secured, Redeemable and Non-Convertible NCDs |
| Issue Size (Base) | Rs 50 Crores |
| Issue Size (Option to retain over subscription) | Rs 40 Crores |
| Total issue size | Rs 90 Crores |
| Issue price | Rs 1,000 per bond |
| Face value | Rs 1,000 per bond |
| Series | I to IX |
| Minimum Lot size | 10 bonds and 1 bond there after |
| Tenure | 367 Days, 18, 24, 36, 60, and 70 Months |
| Interest Payment frequency | Monthly and Cumulative |
| Listing on | Within 6 working days on BSE |
| Lead Manager | Vivro Financial Services Private Limited |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
Check more details in Chemmanur Credits Dec-24 NCD Prospectus
Chemmanur Credits and Investments NCD Dec-2024 – Interest Rates
| Series | I | II | III | IV | V | VI | VII | VIII | IX |
|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Annual | Annual | Cumulative | Cumulative | Cumulative |
| Tenure (months) | 367 Days | 18 | 24 | 60 | 36 | 60 | 367 Days | 24 | 70 |
| Coupon (% per Annum) | 9.50% | 10.75% | 11.00% | 12.00% | 11.15% | 12.10% | NA | NA | NA |
| Effective Yield (% per Annum) | 9.92% | 11.30% | 11.57% | 12.68% | 11.15% | 12.10% | 9.50% | 11.00% | 12.62% |
| Amount on Maturity (In Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,096 | 1,232 | 2,000 |
What are the credit ratings for these NCDs?
These NCDs have been rated as IND BBB-/Stable by India Ratings and Research Limited which indicate that instruments with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry a moderate credit risk.
How is the company doing in terms of profits?
Here are the details of the consolidated profits of the company as per latest RHP of Dec-2024.
- Year ending Mar-2022 – Rs 2.66 Crores
- Year ending Mar-2023 – Rs 0.8 Crores
- Year ending Mar-2024 – Rs 1.72 Crores
Why to invest in Chemmanur Credits and Investments NCD?
1) These Chemmanur Credits NCDs offer attractive interest rates where investors can get interest up to 12.1% per annum and yield up to 12.68%.
2) It issues secured NCDs. These NCDs are safe compared to any other unsecured NCDs. In case a company gets wind-up/shut down for some reason, secured NCD investors would get preference in repayment of capital along with interest as those backed up by assets of the company. Hence, it is safe to invest in such secured NCD options.
Why not to invest in Chemmanur Credits and Investments NCD?
1) Chemmanur Credits and Investments profits are fluctuating. Company profits declined in FY23 and again increased to some extent in FY24.
2) Company has a credit rating of BBB-Stable. Investors should always invest A / AA / AAA rated NCD, which is safer compared to other bonds.
3) Such NBFC companies are subject to RBI inspection and any adverse action can affect the business.
4) Refer NCD prospectus for complete risk factors.
How to subscribe to these NCDs?
This issue is available in only in demat form. You can apply online or through any of the broker website where you are maintaining a demat account. Application forms can be downloaded on the lead manager web site. For more information on this, you can refer prospectus.
Should you invest in Chemmanur Credits and Investments NCD Dec-2024 issue?
These NCDs offer high-interest rates of up to 12.1%, making them attractive for high-risk investors.
However, the BBB-/Stable credit rating and fluctuating profits pose significant risks.
Conservative investors should prefer A/AA/AAA-rated NCDs for greater safety. As always indicated by us in our earlier articles, review the NCD prospectus carefully and align investments based on your risk appetite.
- How to Create an HUF in India – Can It Really Help Save Tax? - January 21, 2025
- How Mutual Funds Work? Understanding the Basics - January 20, 2025
- Denta Water IPO Details, GMP, Review and Analysis – All You Need to Know - January 19, 2025