ICL Fincorp Limited (Originally incorporated as Jawahar Finance Limited) is coming up with secured NCD bonds that will open for subscription on November 11, 2024. The company is a non-deposit-taking and base layer non-banking finance company in India. The interest rates offered are up to 12.5%, and the yield is up to 13.73%. This article will provide some insights into ICL Fincorp NCD of November 2024 issue details, dates, pros, cons, and conclusion review.
About ICL Fincorp Limited
Cmpany is a non-deposit taking and a base layer non-banking finance company (NBFC) in the gold loan sector lending money against the pledge of household gold jewellery in the states of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Odisha, Gujarat and Maharashtra.
They also provide loans against property, business loans and personal loans. Its Gold Loan portfolio (excluding off-balance sheet assets) for the quarter ended June 30, 2024 and Fiscals 2024, 2023, 2022, amounted to 98.77% and 98.66%, 99.20%, 97.51% of its total loans and advances (excluding off-balance sheet assets) as on such specific dates, on standalone basis.
As on September 30, 2024, they had a network of 295 branches, out of which majority of the branches are located in the southern states of India i.e., Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Telangana, Odisha and in the western states of India i.e., Gujarat and Maharashtra.
Who are the promoters of ICL Fincorp Limited?
The Promoters of ICL Fincorp Limied are Kuzhuppilly Govinda Menon Anilkumar and Umadevi Anilkumar.
ICL Fincorp NCD November 2024 issue Details
| Opening Date | 11-Nov-24 |
| Closure date | 25-Nov-24 |
| Issuing Security Name | ICL Fincorp Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 75 Crores |
| Oversubscription | Rs 25 Crores |
| Total Issue Size | Rs 100 Crores |
| Issue price | Rs 1,000 per bond |
| Face value | Rs 1,000 per bond |
| Minimum Lot size | 10 bonds and 1 bond there after |
| Tenure | 13, 24, 36, 60 and 68 Months |
| Series | Series I to X |
| Interest Payment frequency | Monthly and Cumulative |
| Listing on | Within 6 working days on BSE |
| Lead Manager | Saffron Capital Advisors Private Limited |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
ICL Fincorp NCD November 2024- Interest Rates
Its NCD Debenture interest rates are as folows:
| Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Cumulative | Cumulative | Cumulative | Annual | Annual | Cumulative |
| Tenor (in months) | 13 | 24 | 36 | 60 | 13 | 24 | 36 | 24 | 36 | 68 |
| Coupon (% per Annum) | 11.00% | 11.50% | 12.00% | 12.50% | NA | NA | NA | 11.75% | 12.25% | NA |
| Effective Yield (% per Annum) | 11.57% | 12.13% | 12.68% | 13.24% | 11.55% | 12.36% | 13.03% | 11.75% | 12.25% | 13.73% |
| Amount on Maturity (In Rs.) | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,125.16 | 1,254.40 | 1,423.83 | 1,000.00 | 1,000.00 | 2,000.00 |
Financials of ICL Fincorp Limited
Amount in Rs Crores
| Period Ended | 31-Mar-22 | 31-Mar-23 | 31-Mar-24 |
|---|---|---|---|
| Assets | 458.64 | 527.66 | 637.95 |
| Revenue | 89.43 | 112.64 | 145.69 |
| Profit After Tax | 2.71 | 3.04 | 0.08 |
| Net Worth | 68.19 | 78.32 | 83.3 |
ICL Fincorp NCD November 2024 – Positive Factors to invest
- The company is a non-deposit-taking and a base layer NBFC company in India in the gold loan sector lending money. The company has consistently shown revenue and margin growth in the past.
- These NCDs offers a high-interest rate up to 12.5%.
- The company offers secured NCDs. In case the company faces a financial crisis and wind up for some reason, secured NCD investors would receive preference in the repayment of the capital and interest.
ICL Fincorp NCD November 2024 – Risk Factors
- ICL Fincorp NCD rating is CRISIL BBB-/Stable by CRISIL Ratings which is considered to be as low rating.
- Decline in the company capital adequacy ratio could restrict its future business growth.
- Its business is capital intensive and any disruption or restrictions in raising financial resources would have a material adverse effect on its liquidity and financial condition
- Company financial performance is primarily dependent on interest rate risk.
- Company may face increasing competition in its business which may result in declining interest margins.
- Volatility in the market price of gold may adversely affect its financial condition, cash flows and results of operations.
- Its ability to lend against the collateral of gold jewellery has been restricted on account of guidelines issued by RBI, which may have a negative impact on its business and results of operation.
- Investing in NBFC NCD bonds turned riskier in the past as there were defaults and delays in the payment of interest and repayment of capital.
- Investors should go through ICL Fincorp NCD Nov-2024 Prospectus for complete risk factors.
ICL Fincorp NCD November 2024 – Should you invest or avoid?
ICL Fincorp Ltd is a non-deposit-taking and a base layer NBFC company in the gold loan sector lending money with consistent growth in revenue and margins. Its November 2024 NCD issue comes with attractive interest rates of up to 12.5%. In this issue, they are offering secured NCDs, which are safer compared to unsecured NCDs.
On the negative side, the company has a low credit rating of CRISIL BBB-/Stable from CRISIL. Investors should not forget about defaults and delays in the payment of interest/principal from NBFC companies in the past.
Investors need to review both pros and cons before investing in such NCD bonds.
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