Chemmanur Credits and Investments Limited, part of the Boby Chemmanur Group, has announced a new Secured Non-Convertible Debenture (NCD) issue in October 2025. This issue aims to raise funds to support lending operations and general corporate purposes. The company, primarily engaged in gold loan financing, offers attractive interest rates of up to 12.68% effective yield per annum, making it one of the higher-yielding NCDs in the current market.
About Chemmanur Credits and Investments Limited
Incorporated in 2008, Chemmanur Credits and Investments Limited (CCIL) is a non-deposit-taking NBFC registered with the Reserve Bank of India. The company focuses mainly on providing gold loans against household jewellery, operating across Kerala, Tamil Nadu, Karnataka, Maharashtra, and Andhra Pradesh. With over 282 branches and 1,400+ employees, CCIL has built a strong retail presence in South India. It also offers microfinance, business, and personal loans, along with money transfer and insurance distribution services.
The company belongs to the reputed Boby Chemmanur Group, which is known for its gold jewellery and financial services businesses operating in India and abroad.
Chemmanur Credits and Investments NCD October 2025 Issue Details
| Particulars | Details |
|---|---|
| Issue Opening Date | October 17, 2025 |
| Issue Closing Date | November 3, 2025 |
| Security Type | Secured, Redeemable, Non-Convertible Debentures |
| Issue Size (Base) | ₹ 50 Crores |
| Issue Size (Oversubscription) | ₹ 50 Crores |
| Total Issue Size | ₹ 100 Crores |
| Face Value | ₹ 1,000 per NCD |
| Minimum Investment | 10 NCDs (₹ 10,000) |
| Listing | BSE |
| Basis of Allotment | First Come, First Serve |
| Debenture Trustee | Mitcon Credentia Trusteeship Services Ltd. |
Chemmanur Credits and Investments NCD Interest Rates
| Series | Tenure | Frequency | Coupon Rate (p.a.) | Effective Yield (p.a.) | Maturity Amount (₹) |
|---|---|---|---|---|---|
| I | 18 months | Monthly | 10.50% | 11.02% | 1,000 |
| II | 24 months | Monthly | 10.90% | 11.46% | 1,000 |
| III | 36 months | Monthly | 11.30% | 11.90% | 1,000 |
| IV | 60 months | Monthly | 12.00% | 12.68% | 1,000 |
| V | 366 days | Cumulative | – | 9.50% | 1,095.27 |
| VI | 24 months | Cumulative | – | 11.00% | 1,232.00 |
| VII | 70 months | Cumulative | – | 12.62% | 2,000.28 |
Credit Rating
The NCDs are rated IND BBB-/Stable by India Ratings & Research, indicating a moderate degree of safety with moderate credit risk.
Objects of the Issue
The funds raised through this NCD issue will be utilized for:
- Onward lending and financing activities.
- Repayment or prepayment of principal and interest on existing borrowings.
- General corporate purposes.
Company Financials
| Particulars (in ₹ Crores) | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Total Assets | 499.42 | 635.05 | 693.18 |
| Total Income | 83.21 | 106.15 | 141.74 |
| Profit After Tax (PAT) | 0.80 | 1.72 | 2.48 |
The company has shown consistent growth with a 34% rise in revenue and a 44% increase in PAT between FY 2024 and FY 2025, reflecting strong operational performance.
Why to Invest in Chemmanur Credits NCD Oct 2025 Issue
- Attractive returns: Yields up to 12.68%, higher than most bank FDs and many corporate bonds.
- Secured NCDs: Backed by company assets, reducing risk compared to unsecured instruments.
- Monthly and cumulative options: Flexibility for investors depending on their cash flow needs.
- Listed on BSE: Provides liquidity for early exit through the secondary market.
- Established promoter group: Part of Boby Chemmanur Group with strong brand credibility.
Why Not to Invest
- Moderate credit rating: BBB- indicates moderate safety and higher risk compared to AA/AAA-rated NCDs.
- Sector concentration: Heavily dependent on gold loans; any decline in gold prices or regulatory tightening can affect performance.
- Limited geographical presence: Predominantly concentrated in South India.
- Liquidity concerns: Although listed, trading volume in smaller NCD issues is often low.
- Investors should read complete risk factors from the NCD Prospectus.
How to Apply
Investors can apply for Chemmanur Credits and Investments NCDs through:
- Online via ASBA through net banking or trading platforms such as Zerodha, Angel One, or ICICIDirect.
- Offline by submitting a physical application form through designated brokers or banks.
- Minimum investment is ₹ 10,000 (10 NCDs of ₹ 1,000 each).
Conclusion: Should You Invest or Avoid?
Chemmanur Credits and Investments NCD October 2025 issue offers high returns and secured structure, which can be attractive for high-risk investors seeking fixed income opportunities beyond traditional deposits. However, the moderate credit rating and sectoral risks make it suitable only for investors who can take calculated credit risk and hold until maturity.
Recommendation: Invest cautiously for higher returns, but limit exposure to a small portion of your debt portfolio.
FAQs on Chemmanur Credits and Investments NCD October 2025
1. What is the minimum investment for Chemmanur Credits NCD October 2025?
Minimum investment is ₹ 10,000 (10 NCDs of ₹ 1,000 each).
2. Are these NCDs secured?
Yes, they are fully secured by company assets, providing an additional layer of safety.
3. What is the highest interest rate offered?
Up to 12.00% annual coupon or 12.68% effective yield for 60-month tenure.
4. Where will these NCDs be listed?
They will be listed on the Bombay Stock Exchange (BSE).
5. What is the credit rating of this NCD issue?
Rated IND BBB-/Stable by India Ratings & Research, indicating a moderate level of safety.
6. Can NRIs invest in this issue?
No, Non-Resident Indians (NRIs) are not eligible to invest in this NCD issue.
7. When will interest be paid?
Depending on the series chosen, investors can receive monthly interest or cumulative maturity payments.
BBB rating is not moderate credit rating; it is a low credit rating and should be highlighted accordingly.
I agree. I was becoming bad boy always when I was keep indicating that investors should invest only in AA / AAA rated bonds, hence I was revising the words being used in our articles.