Indel Money Limited has once again come up with its latest public issue of Non-Convertible Debentures (NCDs) in October 2025. With interest rates that appeal to investors seeking steady income and security, this NCD issue provides an opportunity to earn attractive fixed returns over different tenors. Let’s dive into the Indel Money NCD Oct-2025 issue key details, including interest rates, issue structure, company background, and whether it’s worth investing in this NCD.
About Indel Money Limited
Indel Money Limited is a non-deposit-taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India. Established in 1986, the company primarily engages in offering gold loans, business loans, and personal loans to retail and small business customers. Headquartered in Kerala, Indel Money has steadily expanded its footprint across South India.
The company is part of the Indel Corporation Group, which has diversified interests across finance, hospitality, automotive, and media sectors. Indel Money’s focus on secured lending, particularly gold loans, has enabled it to maintain asset quality and profitability despite volatile market conditions.
Indel Money NCD Issue Details
- Issuer: Indel Money Limited
- Issue Opening Date: October 13, 2025
- Issue Closing Date: October 28, 2025
- Base Issue Size: ₹. 150 crores
- Green Shoe Option: ₹. 150 crores
- Total Issue Size: ₹. 300 crores
- Face Value: ₹. 1,000 per NCD
- Listing: Proposed on BSE
- Allotment Mode: Demat only
- Minimum Application: 10 NCDs (₹. 10,000) and in multiples of 1 NCD thereafter
Indel Money NCD Interest Rates (October 2025)
The NCDs are being offered in various tenors and interest payment options. Based on the issue prospectus, the indicative annual coupon rates are as follows:
| Series | Tenure | Frequency | Coupon Rate (p.a.) | Effective Yield (p.a.) | Maturity Amount (₹ per NCD) |
|---|---|---|---|---|---|
| I | 366 days | Monthly | 9.00% | 9.38% | ₹1,000 (principal; monthly payout) |
| II | 366 days | Cumulative | NA | 9.00% | ₹1,090.25 |
| III | 24 months | Monthly | 9.75% | 10.20% | ₹1,000 (principal; monthly payout) |
| IV | 24 months | Cumulative | NA | 9.75% | ₹1,204.51 |
| V | 36 months | Monthly | 10.25% | 10.74% | ₹1,000 (principal; monthly payout) |
| VI | 36 months | Cumulative | NA | 10.25% | ₹1,340.28 |
| VII | 60 months | Monthly | 11.25% | 11.84% | ₹1,000 (principal; monthly payout) |
| VIII | 72 months | Cumulative | NA | 12.25% | ₹2,000.83 |
Credit Ratings
The NCDs are rated IVR A-/Stable by Infomerics Valuation and Rating Limited. This indicates a moderate degree of safety regarding timely servicing of financial obligations and moderate credit risk.
Objects of the Issue
The net proceeds from the issue will be utilized for:
- Onward lending – primarily for extending loans to customers.
- Repayment of existing borrowings – to reduce the overall cost of funds.
- General corporate purposes – for business expansion and working capital requirements.
Company Financials (Consolidated)
| Particulars | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Total Income | 187.3 | 291.1 | 330.5 |
| Profit After Tax (PAT) | 20.5 | 39.9 | 44.6 |
| Net Worth | 161.6 | 209.8 | 319.4 |
| Gross AUM (Assets Under Management) | 1,153.9 | 1,533.8 | 2,334.4 |
| Net Interest Margin (NIM) | 10.99% | 12.59% | 9.02% |
| CRAR (Capital to Risk Weighted Assets Ratio) | 25.3% | 22.6% | 20.5% |
| Gross NPA | 2.7% | 5.0% | 1.9% |
| Net NPA | NA | 3.2% | 1.4% |
| Debt to Equity (x) | 4.8 | 4.3 | 4.4 |
These figures reflect Indel Money’s consolidated performance, showing steady income growth and expansion in AUM, with improved asset quality and moderate gearing.
Why to Invest in Indel Money NCD
- Attractive Interest Rates – Yields up to 11.5% are among the highest in the secured NCD space.
- Secured Issue – The NCDs are secured by a first-ranking charge on the company’s current assets, ensuring safety.
- Diversified Loan Portfolio – Focused primarily on secured loans like gold loans.
- Steady Business Growth – Consistent increase in AUM and profitability.
- Listed on BSE – Provides liquidity option through secondary market trading.
Why Not to Invest in Indel Money NCD
- Moderate Credit Rating – IVR A-/Stable is not in the highest safety category.
- Concentration Risk – Heavy dependence on the gold loan business segment.
- Interest Rate Risk – Fixed return instruments may lose attractiveness if interest rates rise.
- NBFC Sector Risk – Any stress in NBFC liquidity or asset quality could impact repayment capacity.
- Investors should go through Indel Money NCD Oct-25 Prospectus for complete risk factors.
How to Apply for Indel Money NCD
Investors can apply through the following channels:
- Online through Demat Account – Using platforms like Zerodha, Groww, or ICICI Direct.
- Through ASBA (Applications Supported by Blocked Amount) – Via net banking of self-certified syndicate banks (SCSBs).
- Through Trading Members / Brokers – Submitting physical ASBA forms at designated branches.
Conclusion – Should You Invest?
Indel Money NCD October 2025 offers attractive interest rates up to 11.5% with secured status and regular income options. The company has shown steady financial performance and growth in its loan portfolio. However, given the moderate rating (A-/Stable) and inherent risks of the NBFC sector, conservative investors should allocate only a small portion of their fixed-income portfolio to this issue.
My View: Suitable for investors seeking high fixed returns with moderate risk appetite. Those seeking absolute safety should prefer higher-rated NCDs or bank deposits.
FAQs
1. What is the minimum investment required in Indel Money NCD?
The minimum investment is ₹. 10,000 (10 NCDs of ₹. 1,000 each).
2. Are the NCDs secured?
Yes, they are secured by a first charge on current assets, including receivables and cash flows of the company.
3. What is the rating of this NCD issue?
The NCDs are rated IVR A-/Stable by Infomerics.
4. How will investors receive interest or redemption amount?
Interest and redemption amounts will be credited directly to the investor’s bank account linked with the Demat account.
5. Can I sell these NCDs before maturity?
Yes, the NCDs will be listed on BSE, allowing investors to sell them before maturity.
6. What is the tax treatment of interest earned on NCDs?
Interest from NCDs is taxable as per the investor’s income tax slab. No TDS is deducted if held in Demat form.
7. Who should invest in this NCD?
Investors seeking fixed income and willing to take moderate credit risk for higher returns can consider this issue.
Disclaimer: The information presented in this article is for informational and educational purposes only and should not be construed as an offer, solicitation, or recommendation to subscribe to the Indel Money Limited NCD October 2025 issue or any other security. Investment in Non-Convertible Debentures (NCDs) is subject to market risks, including the risk of default, changes in interest rates, and liquidity concerns.
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I think rating as IVR A-/Stable by Infomerics Valuation and Rating Limited needs to be viewed with a pinch of salt.