Indel Money is coming up with NCD bonds that would open for subscription on 6th June, 2023. These secured bonds offer interest up to 11.5% and yield up to 12.25%. Investors money would get doubled in 72 moths (6 years). In this article, we would provide Indel Money NCD Bonds of June, 2023 details? What are the pros and cons in these NCD bonds.
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Issue details of Indel Money NCD Bonds June 2023
| Opening Date | 06-Jun-23 |
| Closure date | 19-Jun-23 |
| Security Type | Secured, Redeemable and Non-Convertible NCDs |
| Issue Size (Base) | Rs 50 Crores |
| Total Issue Size | Rs 200 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 | 400 days, 24,61, 72 months |
| Interest Payment frequency | Monthly or on maturity |
| Listing on | Within 6 working days on BSE/NSE |
About Indel Money Limited
Indel Money Limited, founded in 1986, is a non-deposit NBFC specializing in gold loans and other types of loans.
Operating in rural and semi-urban areas of South India, the company has 191 branches spread across states like Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry. They utilize a web-based IT platform for managing loan information and have developed user-friendly web applications and a payment portal called E-Connect. With their extensive experience, long-term gold loan schemes, doorstep loan delivery, and a growing branch network, Indel Money has established itself as a leading player in the South Indian gold loan market.
Indel Money June 2023 NCD Bonds – Interest Rates
| Options | I | II | III | IV | X | VI | VII |
|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Cumulative |
| Tenor (in months) | 400 days | 400 days | 24 | 24 | 61 | 61 | 72 |
| Coupon (% per Annum) | 9.00% | NA | 10.50% | NA | 11.50% | NA | NA |
| Effective Yield (% per Annum) | 9.38% | 9.00% | 11.02% | 10.75% | 12.13% | 11.50% | 12.25% |
| Amount on Maturity (In Rs.) | 1,000 | 1,098 | 1,000 | 1,226 | 1,000 | 1,738 | 2,000 |
Why to invest in Indel Money NCD Bonds 2023?
The company specializes in the gold loan sector, offering loans against the pledge of household gold jewelry. This focus allows them to develop expertise and tailor their services to the specific needs of customers in this segment. In addition to gold loans, Indel Money Limited provides loans against property, business loans, and personal loans. This diversification allows the company to cater to a broader range of customer needs.
These NCD’s offer high interest interest rates up to 11.5% and yield up to 12.25%.
These are secured NCDs. In case company gets wind-up for some reason, investors of these NCD would get preference in the repayment of capital along with interest.
Why not to invest in these bonds?
Credit Rating: Indel Money Limited has received a BBB+/Stable rating from Crisil Ratings Limited, indicating a moderate level of safety for their financial instruments.
Capital Intensive Business: The company’s operations are capital intensive, and any disruptions or limitations in raising financial resources could have a significant negative impact on their liquidity and financial condition.
Interest Rate Risk: Indel Money’s financial performance is highly dependent on interest rate risk management. Failure to effectively manage this risk could adversely affect their net interest margin and overall business and financial condition.
Increasing Competition: The company faces growing competition in their business, which may result in declining interest margins. If they are unable to compete successfully, it may lead to a decline in their market share.
Gold Price Volatility: Fluctuations in the market price of gold can have an adverse impact on Indel Money’s financial condition, cash flows, and operational results.
Restrictions on Gold Jewellery Collateral: The company’s ability to lend against the collateral of gold jewellery has been limited due to guidelines issued by the Reserve Bank of India (RBI). This restriction may have a negative impact on their business and operational results.
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Should you invest in Indel Money NCD’s?
These NCD’s are secured and offer high interest rates.
On the other side, these NCDs are rated as BBB+ Stable by Crisil which are considered as low rating where there is moderate level of safety for the investment.
Investors should understand all these risk factors before investing in such NCDs.
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A company operating from 1986 and still having a rating of only BBB+/Stable – not able to understand because their entire market borrowing depends upon credit rating only.