ICL Fincorp Limited is coming up with its latest Secured, Redeemable, Non-Convertible Debenture (NCD) issue in April 2025. The issue opens on April 25, 2025, and closes on May 9, 2025. The NCDs offer interest rates up to 13.24% per annum, making it an attractive option for investors looking for fixed income. These debentures will be listed on BSE and are rated “CRISIL BBB-/Stable,” indicating moderate credit risk. Let us review the details of this NCD issue and assess whether investors should consider it.
About ICL Fincorp Limited
ICL Fincorp Limited is a non-deposit-taking Non-Banking Financial Company (NBFC) primarily operating in the gold loan segment. Incorporated in 1991, the company has expanded its services to offer loans against property, business loans, and personal loans.
As of March 31, 2025, ICL Fincorp operates 293 branches across southern and western India, including Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Odisha, Gujarat, and Maharashtra. The company’s primary focus is on offering customer-friendly and quick gold loan services to middle-income individuals.
The company reported impressive growth in Assets Under Management (AUM), which stood at ₹571.95 crore as of December 31, 2024. The gold loan AUM was ₹565.96 crore for the same period.
ICL Fincorp NCD April 2025 Issue Details
- Issue Opens: April 25, 2025
- Issue Closes: May 9, 2025
- Type: Secured, Redeemable, Non-Convertible Debentures (NCDs)
- Face Value: ₹1000 per NCD
- Issue Price: ₹1000 per NCD
- Minimum Investment: ₹10,000 (10 NCDs)
- Listing: BSE
- Credit Rating: CRISIL BBB-/Stable
- Allotment Basis: First Come First Serve
- Issue Size: Base Issue ₹50 crore + Oversubscription ₹50 crore = Total ₹100 crore
ICL Fincorp NCD April 2025 Interest Rates
| Series | Tenure |
Interest Frequency |
Coupon (p.a.) | Effective Yield (p.a.) | Maturity Amount (₹.) |
|---|---|---|---|---|---|
| I | 13 months | Monthly | 11.00% | 11.57% | 1,000 |
| II | 24 months | Monthly | 11.50% | 12.13% | 1,000 |
| III | 36 months | Monthly | 12.00% | 12.68% | 1,000 |
| IV | 60 months | Monthly | 12.50% | 13.24% | 1,000 |
| V | 13 months | Cumulative | NA | 11.50% | 1,125.16 |
| VI | 24 months | Cumulative | NA | 12.00% | 1,254.40 |
| VII | 36 months | Cumulative | NA | 12.50% | 1,423.83 |
| VIII | 24 months | Annual | 11.75% | 11.75% | 1,000 |
| IX | 36 months | Annual | 12.25% | 12.25% | 1,000 |
| X | 68 months | Cumulative | NA | 13.01% | 2,000 |
Credit Rating
CRISIL Ratings has assigned “CRISIL BBB-/Stable” to this NCD issue. This rating indicates a moderate degree of safety regarding timely servicing of financial obligations and moderate credit risk.
Why to Invest in ICL Fincorp NCD April 2025?
- Attractive Interest Rates: The NCD offers yields up to 13.24%, higher than most fixed income options.
- Secured NCDs: The debentures are secured, meaning they are backed by the company’s assets.
- Monthly, Annual & Cumulative Options: Multiple payout options suit diverse investor needs.
- Company’s Expanding Network: A strong branch presence across India adds operational stability.
- First Come First Serve: Allotment is quick, benefitting early applicants.
Why Not to Invest?
- Low Credit Rating: BBB- rating indicates moderate risk.
- Concentration in Gold Loans: Heavily dependent on gold loan business.
- Region-Specific Exposure: Most operations are in southern and western India.
- NBFC Sector Risks: Prone to regulatory and liquidity challenges.
- Limited Listing Liquidity: Trading volumes may be low on BSE.
How to Apply for ICL Fincorp NCD April 2025?
You can apply through your demat account via ASBA process or through your stockbroker or online trading platform. The NCDs are available in demat mode only and are listed on BSE.
Should you invest?
ICL Fincorp NCDs offer high returns and flexibility in payout modes. However, investors must note the moderate credit rating and sector-specific risks. Conservative investors or those with low risk appetite may consider avoiding it. For those seeking high returns with moderate risk and can handle some liquidity limitations, this NCD may be a worthwhile addition to a diversified portfolio.
FAQs
- What is the issue open and close date for ICL Fincorp NCD April 2025?
The issue opens on April 25, 2025, and closes on May 9, 2025. - What is the credit rating of the ICL Fincorp NCD?
CRISIL BBB-/Stable. - What is the minimum investment amount?
The minimum investment is ₹10,000 (10 NCDs). - Are these NCDs secured?
Yes, these are secured NCDs backed by the company’s assets. - What is the frequency of interest payment?
Monthly, annual, and cumulative options are available. - Is early exit possible?
NCDs are listed on BSE, but liquidity may be limited. - Who should consider investing?
Investors with moderate risk appetite looking for higher fixed returns.
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