Chemmanur Credits and Investments is currently considering issuing secured NCD bonds to open for subscription on December 31, 2024. Chemmanur Credits and Investments is an Indian non-deposit-taking NBFC company. Chemmanur Credits and Investments NCD has NCD interest rates up to 12.1% and yields up to 12.68%. These NCDs are offered for periods ranging from 367 days to 70 months. These interests are paid either monthly, annually, or at maturity, depending on the option you choose. Should I invest in Chemmanur Credits and Investments NCD Dec-2024?
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 are based in Kerala, India and have been in the lending business for over 13 years.
Chemmanur Credit and Investment NCD December 2024 – Issue Details
Details of the NCD issue are as follows:
| Subscription start date | December 31, 2024 |
| Subscription end date | January 13, 25 |
| 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) | 40 billion rupees |
| Total publication size | 9 billion rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| series | I-IX |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 367 days, 18, 24, 36, 60, 70 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 |
For more information, Chemmanur Credit December 24th NCD Prospectus
Chemmanur Credit and Investment NCD December 2024 – Interest Rates
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII | IX |
|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | monthly | monthly | monthly | yearly | yearly | cumulative | cumulative | cumulative |
| Period of employment (months) | 367 days | 18 | twenty four | 60 | 36 | 60 | 367 days | twenty four | 70 |
| Coupon (% per year) | 9.50% | 10.75% | 11.00% | 12.00% | 11.15% | 12.10% | N.A. | N.A. | N.A. |
| Effective yield (%/year) | 9.92% | 11.30% | 11.57% | 12.68% | 11.15% | 12.10% | 9.50% | 11.00% | 12.62% |
| Amount at maturity (Rs.) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,096 | 1,232 | 2,000 |
What are the credit ratings of these NCDs?
These NCDs are rated IND BBB-/Stable by India Ratings and Research Limited, 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 consolidated profit by latest RHP for December 2024 are as follows:
- Year ending March 2022 – Rs 2,660 crore.
- Year ending March 2023 – Rs.0.8 billion
- Year ending March 2024 – Rs 1,720 crore.
Why invest in Chemmanur Credits and Investments NCD?
1) These Chemmanur Credits NCDs offer attractive interest rates where investors can earn up to 12.1% interest and up to 12.68% yield per annum.
2) Issue a secure NCD. These NCDs are safe compared to other unsafe NCDs. If a company liquidates/goes out of business for any reason, secure NCD investors have priority repayment of their capital along with interest as it is backed by the company’s assets. Therefore, it is safe to invest in such safe NCD options.
Would you like to invest in Chemmanur Credits and Investments NCD?
1) The profits of Chemmanur Credits and Investments are fluctuating. Corporate profits decreased in FY2013, but increased to some extent again in FY2014.
2) The company’s credit rating is BBB-Stable. Investors should always invest in A/AA/AAA rated NCDs which are safe compared to other bonds.
3) Such NBFC companies are subject to RBI inspection and any adverse action may affect their business.
4) 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.
Should you invest in Chemmanur Credits and Investments NCD December 2024 issue?
These NCDs offer high interest rates of up to 12.1%, making them attractive to high-risk investors.
However, BBB/stable credit ratings and volatile returns come with significant risks.
Conservative investors should choose A/AA/AAA rated NCDs for added safety. As always indicated in previous articles, please review the NCD prospectus carefully and adjust your investment based on your risk appetite.
