Chemmanur Credits & Investments Ltd is coming up with its February 2026 public issue of secured Non-Convertible Debentures (NCDs). The company is offering interest rates up to 12% per annum, which may attract investors looking for fixed income options in a rising interest rate environment. However, since this issue carries a BBB- rating, investors need to carefully evaluate the risks before investing. In this detailed review, we cover issue details, interest rates, credit rating trend, financials, risks, and whether investors should subscribe or avoid this NCD issue.
About Chemmanur Credits & Investments Ltd
Incorporated in 2008, Chemmanur Credits & Investments Ltd is a non-deposit taking NBFC (Base Layer) registered with RBI. The company primarily focuses on gold loans by lending against pledged household gold jewellery across Kerala, Tamil Nadu and Karnataka.
As of September 2024, the company operated 282 branches across 5 states and is part of the Boby Chemmanur Group, which is well known in the gold jewellery segment. Apart from gold loans, the company also offers microfinance loans, business and personal loans, money transfer services and distribution of insurance products.
The company’s business model is largely dependent on gold loan demand and gold price stability.
Chemmanur Credits NCD March 2026 – Issue Details
| Particulars | Details |
|---|---|
| Issue Type | Secured, Redeemable NCD |
| Face Value | ₹1,000 per NCD |
| Issue Price | ₹1,000 |
| Base Issue Size | ₹50 Crores |
| Oversubscription Option | ₹50 Crores |
| Total Issue Size | ₹100 Crores |
| Listing | BSE |
| Minimum Investment | ₹10,000 (10 NCDs) |
| Market Lot | 1 NCD |
| Issue Opens | 2 March 2026 |
| Issue Closes | 16 March 2026 |
| Allotment | First Come First Serve |
| Lead Manager | Vivro Financial Services Pvt Ltd |
| Registrar | Kfin Technologies Ltd |
| Debenture Trustee | Mitcon Credentia Trusteeship Services Ltd |
Interest Rates and Tenure Details
The company is offering multiple series with monthly and cumulative options.
| Series | Tenor | Interest Payment | Coupon | Effective Yield | Maturity Amount |
|---|---|---|---|---|---|
| I | 18 Months | Monthly | 10.25% | 10.75% | ₹1,000 |
| II | 24 Months | Monthly | 10.80% | 11.35% | ₹1,000 |
| III | 36 Months | Monthly | 11.25% | 11.85% | ₹1,000 |
| IV | 61 Months | Monthly | 12.00% | 12.68% | ₹1,000 |
| V | 400 Days | Cumulative | NA | 9.25% | ₹1,101.81 |
| VI | 24 Months | Cumulative | NA | 11.00% | ₹1,232.00 |
| VII | 72 Months | Cumulative | NA | 12.25% | ₹2,000.00 |
Higher tenure options offer better effective yields, but also carry higher interest rate risk.
Credit Rating and Rating Trend
The NCD issue has been rated BBB- with Stable outlook by India Ratings & Research.
BBB- rating indicates moderate degree of safety and moderate credit risk. This is investment grade but just one notch above non-investment grade category.
In the last 3–5 years, the company has largely maintained ratings in the BBB category without significant upgrades. Investors should note that this is not a high safety rating like AA or AAA.
Objects of the Issue
The funds raised from this issue will be used for:
• Onward lending and financing activities
• Repayment or prepayment of principal and interest on borrowings
• General corporate purposes
Since the company is an NBFC, most funds will support its lending business.
Company Financials
All figures are in ₹ Crores.
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Total Assets | 499.42 | 635.04 | 693.18 |
| Total Income | 83.21 | 106.14 | 141.74 |
| Profit After Tax | 0.80 | 1.72 | 2.48 |
| Reserves & Surplus | 27.41 | 29.03 | 38.42 |
The company has shown steady growth in assets and income. However, profit margins remain thin compared to the asset base. Return ratios are moderate and not very strong.
Why Should You Invest?
- Attractive interest rates up to 12% per annum.
- Secured NCDs with 1x security cover.
- Listed on BSE, providing liquidity option.
- Gold loan business generally has lower credit risk compared to unsecured lending.
- Growing asset base and improving income trend.
Why Should You Avoid?
- BBB- rating indicates high credit risk.
- Profitability is relatively low compared to assets.
- NBFC business is sensitive to RBI regulations and liquidity cycles.
- Gold price volatility can impact collateral value.
- Limited brand strength compared to larger gold loan players.
How to Apply for Chemmanur Credits NCD
Investors can apply through:
• Net banking ASBA facility
• UPI through supported broker platforms
• Online bond platforms like GoldenPi or Indiabonds
• Through registered brokers
Minimum investment is ₹10,000. Retail investors can apply up to ₹2 lakhs under retail category.
Should You Invest or Avoid?
Chemmanur Credits NCD Feb/March 2026 offers attractive interest rates up to 12%. However, the BBB- rating suggests high credit risk. This issue may suit very high-risk fixed income investors who are comfortable with lower-rated NBFC debt.
Moderate-Conservative investors seeking high safety may prefer AA or AAA rated NCDs or bank FDs.
Overall, this NCD issue is suitable only for very high risk investors and others may avoid.
Frequently Asked Questions
- What is the maximum interest rate offered?
Up to 12% per annum depending on series and tenure. - What is the minimum investment?
₹10,000 (10 NCDs). - Is this NCD secured?
Yes, it is secured with 1x security cover. - Where will the NCD be listed?
It is proposed to be listed on BSE. - What is the credit rating?
BBB- Stable by India Ratings. - Can I sell before maturity?
Yes, after listing on BSE, subject to market liquidity. - Is interest taxable?
Yes, interest earned is taxable as per your income tax slab.
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