InDell Money Is Conceiving NCD Bonds To Start Offering On June 6th June 2023. These secured bonds offer interest of up to 11.5% and yields of up to 12.25%. An investor’s money doubles in 72 months (6 years). This article provides details of IndelMoney NCD Bonds for June 2023. What are the pros and cons of these NCD bonds?
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Indel Money NCD Bond Issuance Details June 2023
| opening date | June 6, 2023 |
| Closing date | June 19, 23 |
| Security type | Safe, Redeemable and Non-Redeemable NCDs |
| issue size (base) | 5 billion rupees |
| total issue size | 200 million rupees |
| issue price | 1,000 rupees per security deposit |
| face value | 1,000 rupees per security deposit |
| Minimum lot size | 10 bonds and then 1 bond |
| tenure | 400 days, 24, 61, 72 months |
| Interest payment frequency | monthly or maturity |
| listing | Within 6 business days for BSE/NSE |
About Indel Money Limited
Indel Money Limited was established in 1986 and is a non-deposit NBFC specializing in gold loans and other types of loans.
The company operates in rural and semi-urban areas of South India, with 191 branches spread across states such as Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana and Pondusheri. I have. The company leverages a web-based IT platform to manage loan information and has developed an easy-to-use web application and payment portal called E-Connect. Indel Money has established itself as a major player in the South Indian gold loan market with extensive experience, long term gold loan schemes, doorstep loan offerings and a growing branch network.
Indel Money Jun 2023 NCD Bonds – Rates
| option | I | Ⅱ | Ⅲ | Ⅳ | X | VI | VII |
|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | Cumulative | monthly | Cumulative | monthly | Cumulative | Cumulative |
| tenor (monthly) | 400 days | 400 days | twenty four | twenty four | 61 | 61 | 72 |
| Coupon (annual %) | 9.00% | NAMore | 10.50% | NAMore | 11.50% | NAMore | NAMore |
| Effective yield (%/year) | 9.38% | 9.00% | 11.02% | 10.75% | 12.13% | 11.50% | 12.25% |
| Amount at maturity (Rs.) | 1,000 | 1,098 | 1,000 | 1,226 | 1,000 | 1,738 | 2,000 |
Why invest in Indel Money NCD Bonds 2023?
The company specializes in the gold loan sector, offering pawned loans for gold jewelry for the home. This focus allows us to develop our expertise and tailor our services to the specific needs of customers in this segment. Indel Money Limited offers loans to real estate, business loans and personal loans in addition to gold loans. This diversification allows the company to meet the needs of a wider range of customers.
These NCDs offer high interest rates up to 11.5% and yields up to 12.25%.
These are secure NCDs. Investors in these NCDs get priority repayment of principal along with interest if the company goes into liquidation for any reason.
Why not invest in these bonds?
Credit Rating: Indel Money Limited has a BBB+/Stable rating from Crisil Ratings Limited, indicating a medium level of financial product safety.
Capital intensive business: The company’s business is capital intensive and any disruption or restriction in funding could have a material adverse effect on its liquidity and financial condition.
Interest rate risk: Indel Money’s financial performance is highly dependent on interest rate risk management. Failure to effectively manage this risk could adversely affect our net interest margins and our overall business and financial condition.
Increased competition: The company is facing increased competition in its business, which may result in lower interest margins. If they can’t compete well, it can lead to a loss of market share.
Gold price volatility: Fluctuations in the market price of gold may adversely affect Indel Money’s financial condition, cash flows and results of operations.
Restrictions on collateral for gold jewelry: Guidelines issued by the Reserve Bank of India (RBI) limit the company’s ability to lend against gold jewellery. This limitation can adversely affect business and operational results.
Also read: 5 Mutual Funds Returning Up to 358% Over 3 Years (100K to 4.4M)
Should I invest in IndelMoney NCD?
These NCDs are safe and offer high interest rates.
On the other hand, these NCDs are rated BBB+ Stable by Crisil and are considered low rated if the investment has moderate security.
Investors should understand all these risk factors before investing in such NCDs.
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