Indel Money NCD Oct-24 – Issue Details and Review
Indel Money is coming up with NCD issue that would open for subscription on 21 October and closes on 4 November, 2024. These secured bonds offer interest up to 12% and yield up to 13.44%. Investors money would get doubled in 366 days to 66 months. In this article, we would provide Indel Money NCD Oct-24 issue? What are the pros and cons in these NCD bonds. In this article we would provide complete review about these NCD bonds.
Indel Money NCD Oct-24 Details
Opening Date
21-Oct-24
Closure date
04-Nov-24
Issuing Security Name
Indel Money Limited
Security Type
Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)
Rs 75 Crores
Oversubscription
Rs 75 Crores
Total Issue Size
Rs 150 Crores
Issue price
Rs 1,000 per bond
Face value
Rs 1,000 per bond
Minimum Lot size
10 bonds and 1 bond there after
Series
I to VII
Interest Payment frequency
Monthly or on maturity
Listing on
Within 6 working days on BSE
Lead Manager
Vivro Financial Services Private Limited
Debenture Trustee/s
Vistra Itcl India Limited
About Indel Money Limited
Indel Money Limited, founded in 1986, is a non-deposit NBFC specializing in gold loans and other types of loans.
Operating in rural and semi-urban areas of South India, the company has 250 branches spread across states like Kerala, Tamil Nadu, Karnataka, Odisha, Maharastra, Andhra Pradesh, Telangana, and Puducherry.
They utilize a web-based IT platform for managing loan information and have developed user-friendly web applications and a payment portal called E-Connect. With their extensive experience, long-term gold loan schemes, doorstep loan delivery, and a growing branch network, Indel Money has established itself as a leading player in the South Indian gold loan market.
As August, 2024 end, company had a total of 1,731 employees.
Strengths of Indel Money Limited
It is a Non-deposit-taking NBFC in the Gold Loan sector in South India with a long operating history
Long-term gold loan schemes that are beneficial for customers
Doorstep delivery of gold loans
Well-established and growing branch network across rural and semi-urban areas in South India
The experienced management team and skilled personnel
Indel Money Limited NCD Interest Rates
Series
I
II
III
IV
V
VI
VII
Frequency of Interest Payment
Monthly
Cumulative
Monthly
Monthly
Cumulative
Monthly
Cumulative
Tenor (in months)
366 Days
366 Days
18
30
30
60
66
Coupon (% per Annum)
10.00%
NA
10.50%
11.00%
NA
12.00%
NA
Effective Yield (% per Annum)
10.47%
10.00%
11.02%
11.57%
11.00%
12.68%
13.44%
Amount on Maturity (In 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 Ended
31-Mar-21
31-Mar-22
31-Mar-23
31-Mar-24
Assets
502.2
736.8
1005.4
1244.9
Revenue
94.7
123
187.3
291.1
Profit After Tax
8.7
2.11
20.5
39.8
Objects of the NCD Issue
The company proposes to utilize the funds towards funding the following objects:
For the purpose of onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company
General corporate purposes.
Indel Money NCD Oct-24 Prospectus
Why to invest in Indel Money NCD Oct-24?
The company specializes in the gold loan sector, offering loans against the pledge of household gold jewelry. This focus allows them to develop expertise and tailor their services to the specific needs of customers in this segment. In addition to gold loans, Indel Money Limited provides loans against property, business loans, and personal loans. This diversification allows the company to cater to a broader range of customer needs.
These NCD’s offer high interest interest rates up to 12% and yield up to 13.44%.
These are secured NCDs. In case company gets wind-up or shut down for some reason, investors of these NCD would get preference in the repayment of capital along with interest.
Why not to invest in Indel Money NCD Oct-24?
Indel Money Limited NCDs are rated as BBB+/Stable rating by Crisil Ratings Limited, indicating a moderate level of safety for their financial instruments. These ratings are considered to have low risk. Investors should prefer to invest in AAA / AA / A rated NCDs which are more secured compared to NCDs that have lower ratings.
The company’s operations are capital intensive, and any disruptions or limitations in raising financial resources could have a significant negative impact on their liquidity and financial condition.
Indel Money’s financial performance is highly dependent on interest rate risk management. Failure to effectively manage this risk could adversely affect their net interest margin and overall business and financial condition.
Fluctuations in the market price of gold can have an adverse impact on Indel Money’s financial condition, cash flows, and operational results.
The company’s ability to lend against the collateral of gold jewellery has been limited due to guidelines issued by the Reserve Bank of India (RBI). This restriction may have a negative impact on their business and operational results.
Is Indel Money NCD safe?
These NCDs are rated as BBB+Stable by CRISIL ratings which are considered as moderate level of safety for the investment.
Indel Money NCD Oct-24 Review – Should you invest or Avoid?
These NCD’s are secured and offer high interest rates.
On the other side, these NCDs are rated as BBB+ Stable by Crisil which are considered as low rating.
Investors should understand all these risk factors before investing in such NCDs.
Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)
