Indel Money plans to launch the NCD issue on October 21 and close on November 4, 2024. These secured bonds offer up to 12% interest and yields up to 13.44%. Investors’ money doubles in 366 days to 66 months. In this article: Indel Money NCD October 24 issue?What are the advantages and disadvantages of these NCD bonds? This article provides a complete review of these NCD bonds.
Indel Money NCD October 24 Details
| opening day | October 21, 2024 |
| Closing date | November 4, 24 |
| Issued securities name | Indel Money Limited |
| Type of security | Secured, redeemable, non-convertible debentures (Secured NCDs) |
| Publication size (base) | 75 billion rupees |
| oversubscription | 75 billion rupees |
| Total publication size | 150 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 |
| series | Ⅰ～Ⅶ |
| Interest payment frequency | monthly or per maturity |
| Listed | Within 6 business days for BSE |
| lead manager | Vivro Financial Services Private Limited |
| bond trustee | Vistra ITCL India 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, with presence in states such as Kerala, Tamil Nadu, Karnataka, Orissa, Maharastra, Andhra Pradesh, Telangana and Puducherry. It has 250 branches spread across.
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 offerings and expanding branch network.
As of the end of August 2024, the company had a total of 1,731 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
Indel Money Limited NCD Interest Rate
| series | I | II | Ⅲ | Ⅳ | V | VI | VII |
|---|---|---|---|---|---|---|---|
| Interest payment frequency | monthly | cumulative | monthly | monthly | cumulative | monthly | cumulative |
| tenor (monthly) | 366 days | 366 days | 18 | 30 | 30 | 60 | 66 |
| Coupon (% per year) | 10.00% | N.A. | 10.50% | 11.00% | N.A. | 12.00% | N.A. |
| Effective yield (%/year) | 10.47% | 10.00% | 11.02% | 11.57% | 11.00% | 12.68% | 13.44% |
| Amount at maturity (Rs.) | 1,000.00 | 1,100.29 | 1,000.00 | 1,000.00 | 1,298.10 | 1,000.00 | 2,000.85 |
Indel Money Limited – Financial Information
| Period ends | March 31, 2021 | March 31, 22 | March 31, 23 | March 31, 24 |
|---|---|---|---|---|
| assets | 502.2 | 736.8 | 1005.4 | 1244.9 |
| revenue | 94.7 | one two three | 187.3 | 291.1 |
| Profit after tax | 8.7 | 2.11 | 20.5 | 39.8 |
Target of NCD problem
The company proposes 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 October 24 Prospectus
Why invest in Inder Money NCD Oct-24?
- 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 12% and yields of up to 13.44%.
- 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.
Interested in investing in Indel Money NCD Oct-24?
- 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.
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 October 24 Review – Should you invest or avoid?
- 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 a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. Contact him at suresh@myinvestmentideas.com.
