Indel Money NCD January 2024 – Issue Details and Review

Indel Money is coming up with NCD issue that would open for subscription on 30 January, 2024. 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 January, 2024 issue? What are the pros and cons in these NCD bonds. In this article we would provide complete review about these NCD bonds.

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Indel Money NCD January 2024 Details

Opening Date 30-Jan-24
Closure date 12-Feb-24
Issuing Security Name Indel Money Limited
Security Type Secured, Rated, Listed,Redeemable, Non-Convertible Debentures
Issue Size (Base) Rs 100 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 366 days, 24, 36, 60 and 72 months
Interest Payment frequency Monthly or on maturity
Listing on Within 6 working days on BSE/NSE
Lead Manager Vivro Financial Services Private Limited
Debenture Trustee/s Catalyst Trusteeship Limited

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 250 branches spread across states like Kerala, Tamil Nadu, Karnataka, Odisha, Maharashtra, 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.

As 30 September, 2023, company had a total of 1,201 employees.

Indel Money NCD January 2024 public issue date, price, interest rates

Strengths of Indel Money Limited

  • It is a Non-deposit-taking NBFC in the Gold Loan sector in South India with a long operating history
  • Long-term gold loan schemes that are beneficial for customers
  • Doorstep delivery of gold loans
  • Well-established and growing branch network across rural and semi-urban areas in South India
  • The experienced management team and skilled personnel

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Indel Money Limited NCD Coupon Rates

Frequency of Interest Payment Monthly Cumulative Monthly Cumulative Monthly Cumulative Monthly Cumulative
Tenor (in months) 366 days 366 days 24 24 36 36 60 72
Coupon (% per Annum) 9.00% NA 9.75% NA 10.75% NA 11.50% NA
Effective Yield (% per Annum) 9.38% 9.00% 10.20% 9.75% 11.30% 10.75% 12.13% 12.25%
Amount on Maturity (In Rs.) 1,000.00 1,090.00 1,000.00 1,204.51 1,000.00 1,358.41 1,000.00 2,000.41

Indel Money Limited – Financial Information

Period Ended 31-Mar-21 31-Mar-22 31-Mar-23 31-Dec-23
Assets 502.2 736.8 1013.9 1133.8
Revenue 94.7 123 187.3 143.4
Profit After Tax 8.7 2.11 20.5 28.6

Objects of the NCD Issue

The Company proposes to utilize the funds towards funding the following objects:

  • For the purpose of onward lending, financing, and for repayment / prepayment of principal and interest on borrowings of the Company
  • General corporate purposes.

Indel Money NCD January 2024 Prospectus

Why to invest in Indel Money NCD Jan-2024?

  • 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 or shut down for some reason, investors of these NCD would get preference in the repayment of capital along with interest.

Why not to invest in Indel Money NCD Jan-2024?

  • Indel Money Limited NCDs are rated as BBB+/Stable rating by Crisil Ratings Limited, indicating a moderate level of safety for their financial instruments. These ratings are considered to have low risk. Investors should prefer to invest in AAA / AA / A rated NCDs which are more secured compared to NCDs that have lower ratings.
  • 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.
  • 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.
  • Fluctuations in the market price of gold can have an adverse impact on Indel Money’s financial condition, cash flows, and operational results.
  • 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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Is Indel Money NCD safe?

These NCDs are rated as BBB+Stable by CRISIL ratings which are considered as moderate level of safety for the investment.

Indel Money NCD Jan-2024 Review – Should you invest or Avoid?

  • 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.

Investors should understand all these risk factors before investing in such NCDs.

Suresh KP

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