Indel Money plans to issue an NCD with subscriptions commencing on January 30, 2024. These secured bonds offer up to 11.5% interest and up to 12.25% yield. Investors’ money doubles in 72 months (6 years). In this article: Indel Money NCD January 2024 issue• What are the advantages and disadvantages of these NCD bonds? This article provides a complete review of these NCD bonds.
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Indel Money NCD January 2024 Details
| opening day | January 30, 24 |
| Closing date | February 12, 2024 |
| Issued securities name | Indel Money Limited |
| Type of security | Safe, rated, listed, redeemable, non-convertible bonds |
| Publication size (base) | 100 million rupees |
| Total publication size | 200 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 | 366 days, 24, 36, 60, 72 months |
| Interest payment frequency | monthly or per maturity |
| Listed | Within 6 business days for BSE/NSE |
| lead manager | Vivro Financial Services Private Limited |
| bond trustee | Catalyst Trusteeship Limited |
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, including states like Kerala, Tamil Nadu, Karnataka, Odisha, Maharashtra, Andhra Pradesh, Telangana and Puducherry. It has 250 branches across the states.
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 leading player in the South Indian gold loan market with its rich experience, long-term gold loan schemes, doorstep loan offering and expanding branch network.
As of September 30, 2023, the company had a total of 1,201 employees.
Strengths of Indel Money Limited
- It is a no-deposit NBFC in the gold loan sector in South India with a long operational track record.
- Long-term financial loan system beneficial to customers
- Gold loan doorstep delivery
- Established and growing branch network across rural and semi-urban areas of South India
- Experienced management team and skilled personnel
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Indel Money Limited NCD Coupon Fee
| series | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII |
|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | cumulative | monthly | cumulative | monthly | cumulative | monthly | cumulative |
| tenor (monthly) | 366 days | 366 days | twenty four | twenty four | 36 | 36 | 60 | 72 |
| Coupon (% per year) | 9.00% | N.A. | 9.75% | N.A. | 10.75% | N.A. | 11.50% | N.A. |
| Effective yield (%/year) | 9.38% | 9.00% | 10.20% | 9.75% | 11.30% | 10.75% | 12.13% | 12.25% |
| Amount at maturity (Rs.) | 1,000.00 | 1,090.00 | 1,000.00 | 1,204.51 | 1,000.00 | 1,358.41 | 1,000.00 | 2,000.41 |
Indel Money Limited – Financial Information
| Period ends | March 31, 2021 | March 31, 22 | March 31, 23 | December 31, 2023 |
|---|---|---|---|---|
| assets | 502.2 | 736.8 | 1013.9 | 1133.8 |
| revenue | 94.7 | one two three | 187.3 | 143.4 |
| Profit after tax | 8.7 | 2.11 | 20.5 | 28.6 |
Target of NCD problem
We propose to utilize this funding to fund the following objectives:
- For our company’s loans, financing, repayment and early repayment of principal and interest of borrowed money.
- General corporate purposes.
Indel Money NCD January 2024 Prospectus
Why invest in Indel Money NCD Jan-2024?
- The company specializes in the gold loan sector and offers loans on pawn of household gold jewellery. This focus allows us to develop our expertise and tailor our services to the specific needs of customers in this segment. Indel Money Limited, in addition to gold loans, also offers loans against real estate, business loans, and personal loans. This diversification allows the company to meet the needs of a wider range of customers.
- These NCDs offer high interest rates of up to 11.5% and yields of up to 12.25%.
- These are secure NCDs. If the company is liquidated or shut down for any reason, investors in these NCDs will have priority in repayment of their principal along with interest.
Would you like to invest in Indel Money NCD Jan-2024?
- Indel Money Limited NCD is rated BBB+/Stable by Crisil Ratings Limited, indicating a medium level of safety of the financial instrument. These assessments are considered low risk. Investors should prefer investing in AAA/AA/A rated NCDs as they are safer compared to lower rated NCDs.
- The Company’s operations are capital intensive, and any disruption or restriction in its financing could have a material adverse effect on its liquidity and financial condition.
- Indel Money’s financial performance is highly dependent on interest rate risk management. If we are unable to effectively manage this risk, our net interest margin and overall business and financial condition could be adversely affected.
- Fluctuations in the market price of gold may adversely affect Indel Money’s financial condition, cash flows and results of operations.
- Guidelines issued by the Reserve Bank of India (RBI) restrict the company’s ability to lend money using gold jewelery as collateral. This limitation may adversely affect our business and operational results.
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Is Inder Money NCD safe?
These NCDs are rated BBB+ Stable by CRISIL Ratings and are considered a medium safety level for investment.
Indel Money NCD January 2024 Review – Should you invest or avoid investing?
- These NCDs are safe and offer high interest rates.
- On the other hand, these NCDs are rated BBB+ Stable by Crisil and are considered to be poorly rated.
Investors should understand all these risk factors before investing in such NCDs.
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.
