Chemmanur Credits and Investments NCD February 24 issue details and reviews
Chemmanur Credits and Investments is currently considering issuance of secured NCD bonds to open for subscription on February 20, 2024. 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 12.25%. These NCDs are offered for periods ranging from 366 days to 72 months. These interests are paid monthly or at maturity. Should you invest in the February 2024 issue of Chemmanur Credits and Investments NCD?
Also read: 5 mutual funds that generated returns of 2.6x to 3.8x over 5 years
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 principally 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 February 24 – Issue Details
Details of the NCD issue are as follows:
| Subscription start date | February 20, 2024 |
| Subscription end date | March 4, 24 |
| 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 issue 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, 72 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 February 24th NCD Prospectus Link
Chemmanur Credits and Investments NCD February 24 – Interest Rates
| 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 | 72 |
| 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% | 12.25% |
| Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,095 | 1,226 | 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?
Here are the company’s earnings details from the latest RHP on February 24th.
- Year ended March 2022 – Rs 4,310 crore.
- Year ending March 2023 – Rs.0.8 billion
- Six months to September 2023 – Rs.7.3 billion
Why invest in Chemmanur Credits and Investments NCD Feb-24?
- These Chemmanur Credits NCDs offer attractive interest rates where investors can earn up to 11.5% interest and up to 12.25% 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 Chemmanur Credits and Investments NCD Feb-24?
- Chemmanur Credits and Investments’ profits are on the decline. It incurred a loss in the quarter ended June 23, but generated a profit for the six months ended September 23.
- The company’s credit rating is BBB-Stable. Investor should always invest in his NCDs with A/AA/AAA rating which are safe compared to these bonds.
- Such NBFC companies are subject to RBI inspection and any adverse action could affect their business.
- Please refer to the NCD 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 information on this.
Also read: 5 mutual funds that doubled in 3 years
Should you invest in Chemmanur Credits and Investments NCD February 24 issue?
- These NCDs offer high interest rates of up to 11.5%, resulting in a yield of 12.25%. 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 these bonds are not 100% risk-free, they are safer than bonds with lower credit ratings.
Personally, I would like to avoid such NCD bonds for now.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. I have been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
