Chemmanur Credits and Investments is currently considering the issuance of secured NCD bonds to open for subscription on October 16, 2023. Chemmanur Credits and Investments is a non-deposit taking NBFC company in India. Chemmanur Credits and Investments NCD has NCD interest rates up to 11.5% and yields up to 11.9%. These NCDs are offered for periods ranging from 366 days to 74 months. These interests are paid monthly or at maturity. Should you invest in the October 2023 issue of Chemmanur Credits and Investments NCD?
About Chemmanur Credits and Investments Limited
We are a non-banking financial company registered with the RBI that does not accept deposits.
The company is primarily engaged in the gold loan segment of lending money against household gold jewelery collateral in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Maharashtra.
It also offers microfinance loans, business and personal loans, money transfer services, and the sale of third-party insurance products. They have been in the lending business for over 13 years and are based in the state of Kerala, India. As of September 30, 2023, the company has 222 branches across five states – Kerala, Tamil Nadu, Karnataka, Maharashtra and Andhra Pradesh through its registered office in Thrissur, Kerala. The company employs 1,172 people to operate the business.
Chemmanur Credit and Investment NCD October 2023 – Issue Details
Details of the NCD issue are as follows:
Subscription start date | October 16, 2023 |
Subscription end date | October 30, 2023 |
Issued securities name | KEMANUR CREDIT AND INVESTMENTS LIMITED. |
Type of security | Secure, redeemable and non-convertible NCDs |
Publication size (base) | 5 billion rupees |
Publish size (option to keep beyond subscription) | 5 billion rupees |
Total publication size | 100 million rupees |
Issue price | 1,000 rupees per deposit |
face value | 1,000 rupees per deposit |
series | I-VIII |
minimum lot size | 10 bonds and then 1 bond |
tenure | 366 days, 18, 24, 36, 60, 12, 74 months |
Interest payment frequency | Monthly and cumulative |
Listed | Within 6 business days for BSE |
lead manager | Vivro Financial Services Private Limited |
bond trustee | Mitcon Credencia Trusteeship Services Limited |
Chemmanur Credit October 2023 NCD Prospectus Link
Chemmanur Credits and Investments NCD Interest Rate – October 2023
series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII |
---|---|---|---|---|---|---|---|---|
Interest payment frequency | monthly | monthly | monthly | monthly | monthly | cumulative | cumulative | cumulative |
Period of employment (months) | 366 days | 18 | twenty four | 36 | 60 | 12 | twenty four | 74 |
Coupon (% per year) | 9.50% | 10.50% | 10.75% | 11.00% | 11.50% | N.A. | N.A. | N.A. |
Effective yield (%/year) | 9.92% | 11.02% | 11.30% | 11.57% | 12.13% | 9.50% | 10.75% | 11.90% |
Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,095 | 1,227 | 2,000 |
What are the credit ratings of these NCDs?
These NCDs are rated CRISIL BBB-/Stable by CRISIL Ratings, indicating that instruments with this rating are considered to have moderate security with respect to timely repayment of financial obligations. Such products involve moderate credit risk.
What about the company’s profits?
Details of the company’s latest RHP earnings for October 2023 are as follows:
Why invest in these NCDs?
- These Chemmanur Credits NCDs offer attractive interest rates where investors can earn up to 11.5% interest and up to 11.9% yield per annum.
- Issue a secure NCD. These NCDs are safe compared to other unsafe NCDs. If a company liquidates or goes out of business for any reason, NCD investors who have secured security can preferentially repay the capital backed by the company’s assets with interest. Therefore, it is safe to invest in such safe NCD options.
Would you like to invest in these NCDs?
- Chemmanur Credits and Investments’ profits are on the decline. The company also suffered a loss in the quarter that ended June 23.
- The company’s credit rating is BBB-Stable. Investors should always invest in his NCDs with A/AA/AAA ratings, but there is little safety compared to these bonds.
- Such NBFC companies are subject to RBI inspection and any adverse action could affect their business.
- See prospectus for complete risk factors.
How can I subscribe to these NCDs?
This issue is available only in demat format. You can apply online or through the website of the broker where you maintain your demat account. Application forms can be downloaded from the Lead Manager’s website. Please refer to the prospectus for further details.
Should I invest in Chemmanur Credits NCD bonds issued on October 23?
These NCDs offer high interest rates of up to 11.5%, resulting in a yield of 11.9%. This interest rate is attractive.
On the other hand, the company’s credit rating is BBB, which is considered to be low. Corporate profits are also on the decline. Investors should not forget about NBFCs that have failed to pay NCDs to investors and companies that have delayed or delayed payment of NCD interest to investors.
As I have always pointed out earlier, investors should invest in A/AA/AAA rated NCD bonds. Although NCD bonds are not 100% risk-free, they offer little safety compared to lower-rated bonds.
Personally, I would like to avoid such NCD bonds for now.
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