ICL Fincorp Limited (initially incorporated as Jawahar Finance Limited) plans to issue secured NCD bonds to open for subscription on November 11, 2024. The company is a non-deposit-taking base layer non-banking financial company in India. The offered interest rate is up to 12.5% and the yield is up to 13.73%. This article provides some insights ICL Fincorp NCD for November 2024 Review of issue details, dates, pros and cons, and conclusions.
About ICL Fincorp Limited
The company is a base tier in the non-deposit gold loan sector that lends funds against household gold jewelery pledges in the states of Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Telangana and Odisha. It is a non-banking financial company (NBFC). , Gujarat and Maharashtra.
We also offer real estate loans, business loans, and personal loans. Gold loan portfolio (excluding off-balance sheet assets) for the quarter ended June 30, 2024 and fiscal years 2024, 2023 and 2022 amounted to 98.77%, 98.66%, 99.20% and 97.51% of total loans and advances. (excluding off-balance sheet assets). -balance sheet assets) are similar to those on a standalone basis at such specific date.
As of September 30, 2024, the company had a network of 295 branches, of which the majority of branches are located in the southern states of India namely Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, It is located in Telangana, Orissa and western states. India, namely Gujarat and Maharashtra.
Who are the promoters of ICL Fincorp Limited?
The promoters of ICL Fincorp Limied are Kuzhuppilly Govinda Menon Anilkumar and Umadevi Anilkumar.
ICL Fincorp NCD November 2024 issue details
| opening day | November 11, 24 |
| Closing date | November 25, 24 |
| Issued securities name | ICL Fincorp Limited |
| Type of security | Secured, redeemable, non-convertible debentures (Secured NCDs) |
| Publication size (base) | 75 billion rupees |
| oversubscription | 25 billion rupees |
| Total issue size | 100 million rupees |
| Issue price | 1,000 rupees per deposit |
| face value | 1,000 rupees per deposit |
| minimum lot size | 10 bonds and then 1 bond |
| tenure | 13, 24, 36, 60, 68 months |
| series | Series I~X |
| Interest payment frequency | Monthly and cumulative |
| Listed | Within 6 business days for BSE |
| lead manager | Safran Capital Advisors Private Limited |
| bond trustee | Mitcon Credencia Trusteeship Services Limited |
ICL Fincorp NCD November 2024 – Interest Rate
The interest rates for NCD bonds are as follows:
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII | IX | × |
|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | monthly | monthly | monthly | cumulative | cumulative | cumulative | yearly | yearly | cumulative |
| tenor (monthly) | 13 | twenty four | 36 | 60 | 13 | twenty four | 36 | twenty four | 36 | 68 |
| Coupon (% per year) | 11.00% | 11.50% | 12.00% | 12.50% | N.A. | N.A. | N.A. | 11.75% | 12.25% | N.A. |
| Effective yield (%/year) | 11.57% | 12.13% | 12.68% | 13.24% | 11.55% | 12.36% | 13.03% | 11.75% | 12.25% | 13.73% |
| Amount at maturity (Rs.) | 1,000.00 | 1,000.00 | 1,000.00 | 1,000.00 | 1,125.16 | 1,254.40 | 1,423.83 | 1,000.00 | 1,000.00 | 2,000.00 |
Financial status of ICL Fincorp Limited
Amount (Rs Crores)
| Period ends | March 31, 22 | March 31, 23 | March 31, 24 |
|---|---|---|---|
| assets | 458.64 | 527.66 | 637.95 |
| revenue | 89.43 | 112.64 | 145.69 |
| Profit after tax | 2.71 | 3.04 | 0.08 |
| net worth | 68.19 | 78.32 | 83.3 |
ICL Fincorp NCD November 2024 – Positive factors for investment
- The company is a non-deposit-taking base layer NBFC company that lends funds in the gold loan sector in India. The company has consistently shown revenue and profit growth.
- These NCDs offer high interest rates of up to 12.5%.
- The company offers safe NCDs. If the company faces financial crisis and goes bankrupt for any reason, safe NCD investors will receive priority in repayment of principal and interest.
ICL Fincorp NCD November 2024 – Risk Factors
- ICL Fincorp NCD is rated CRISIL BBB-/Stable by CRISIL Ratings, which is considered a low rating.
- A decline in the equity ratio may place constraints on future business growth.
- Its operations are capital intensive, and any interruption or restriction in its financing could have a material adverse effect on its liquidity and financial condition.
- A company’s financial performance primarily depends on interest rate risk.
- We may face increased competition in our business, which may result in lower interest margins.
- Fluctuations in the market price of gold may adversely affect gold’s financial condition, cash flows and results of operations.
- Guidelines issued by the RBI limit the Company’s ability to lend with gold jewelery as collateral, which may adversely affect the Company’s business and results of operations.
- Investing in NBFC NCD bonds is riskier due to historical defaults and delays in interest payments and capital repayments.
- Investors must pass Complete Risk Factors ICL Fincorp NCD November 2024 Prospectus.
ICL Fincorp NCD November 2024 – Should you invest or avoid?
ICL Fincorp Ltd is a non-deposit-taking base layer NBFC company in the gold loan sector that lends funds with consistent growth in revenue and profits. The November 2024 NCD issue comes with an attractive interest rate of up to 12.5%. This issue provides secure NCDs that are safe compared to non-secure NCDs.
On the downside, the company’s credit rating is low from CRISIL to CRISIL BBB-/Stable. Investors should not forget the past defaults and delayed payment of interest and principal by NBFC companies.
Investors should consider both the pros and cons before investing in such NCD bonds.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified – Investment Advisor and a NISM Certified – Research Analyst. I have been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
