Indel Money Limited NCD: Know Before you Invest

NCD Detail

Indel Money Limited, a non-banking financial company specialising in gold loans, announced on Thursday its plans to accumulate Rs 100 crore via the issuance of secured non-convertible debentures (NCDs).
The NCD offering, with each unit bearing a face value of Rs 1,000, is slated to open on June 6 and will remain accessible until June 19, as stated by the lender. The company intends to launch the base issue of up to Rs 50 crore, with a provision to retain oversubscription of an equivalent amount, culminating in a total of Rs 100 crore.
The proposed debentures, with maturity periods spanning 400 days to 72 months, offer a maximum annual coupon yield of 12.25 per cent. Notably, Crisil Ratings Ltd has accorded the issue a BBB+/Stable rating.
Historically, Indel Money raised Rs 100 crore via NCDs in May 2022 and plans to procure about Rs 300 crore through public debenture issues in the 2024 fiscal year.
Over the 2023 fiscal year, the lender experienced an impressive loan growth of 210 per cent, resulting in a total disbursement of Rs 3,000 crore. A significant 92 per cent of its loan portfolio was dominated by gold loans.
Furthermore, the company’s assets under management (AUM) witnessed a 72 per cent surge, escalating from Rs 669 crore in FY22 to Rs 1,154 crore in FY23. With an ambitious target of reaching Rs 2,100 crore AUM in the ongoing fiscal, the company envisions an 81 per cent growth.
With operations spread across eight states, Indel Money has an expansion plan that entails the establishment of over 500 branches by FY25 across 15 Indian states.

About Company

Founded in 1986, Indel Money Limited is a recognised non-deposit-accepting non-banking finance company (NBFC) endorsed by the Reserve Bank of India (RBI). The company’s primary service area revolves around the gold loan sector, offering loans against household gold jewellery. Additionally, Indel Money Limited provides various other financial services, including loans against property, business loans, and personal loans.
The company’s client base largely comprises residents of rural and semi-urban areas who avail of their gold loan services. As of August 31, 2021, the company’s reach extended across several states and a union territory, boasting a network of 191 branches in locations such as Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry.
Indel Money Limited relies on a web-based centralised IT platform to manage the expansive loan information and streamline business operations. This platform effectively logs details from all branches and oversees the management of the loans and their related data. The company has rolled out web applications on the Google Play Store and the iOS App Store to provide easy access to its services. Moreover, the company has developed E-Connect, a web-based payment portal, to optimise business efficiency.
Among the key strengths that give Indel Money Limited a competitive edge are its long-standing presence in the South Indian gold loan sector as a non-deposit-taking NBFC and its long-term gold loan schemes designed to favour its customers. Furthermore, the company’s unique proposition of doorstep delivery of gold loans sets it apart in the market. Other significant advantages include its expansive and continually growing branch network across rural and semi-urban areas in South India and an experienced management team complemented by skilled personnel.

Financial Performance (In Crore)

Period Ended	Total Assets	Total Revenue	Profit After Tax
31-Mar-21	501.99	94.66	8.75
31-Mar-22	736.55	123.00	2.11

Important Dates

Issue Open	June 6, 2023 – June 19, 2023
Security Name	Indel Money Limited
Security Type	Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
Issue Size (Base)	Rs 50.00 Crores
Issue Size (Shelf)	Rs 100.00 Crores
Issue Price	Rs 1000 per NCD
Face Value	Rs 1000 each NCD
Minimum Lot size	10 NCD
Market Lot	1 NCD
Listing At	BSE
Credit Rating	BBB +/Stable rating by Crisil Ratings Limited.
Tenor	400 days, 24, 61, and 72 months.
Series	Series I to VII
Payment Frequency	Monthly and Cumulative
Basis of Allotment	First Come First Serve Basis
Debenture Trusties	Vistra Itcl India Limited

Coupon Rates

#	Series1	Series2	Series3	Series4	Series5	Series6	Series7
Frequency of Interest Payment	Monthly	Cumulative	Monthly	Cumulative	Monthly	Cumulative	Cumulative
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	400 Days	400 Days	24 Months	24 Months	61 Months	61 Months	72 Months
Coupon (% per Annum)	9.00%	NA	10.50%	NA	11.50%	NA	NA
Effective Yield (%per Annum)	9.38%	9.00%	11.02%	10.75%	12.13%	11.50%	12.25%
Amount on Maturity (In Rs)	1,000	1,098.75	1,000	1,226.56	1,000	1,739	2,000.41

NCD Rating

The non-convertible debentures (NCDs) planned for issuance under this offering by the company have been assessed and awarded a rating of BBB+/Stable by Crisil Ratings Limited. This rating connotes a CRISIL triple B plus rating with a stable outlook.

Company Promoters

The promoter of Indel Money Limited NCD is Indel Corporation Private Limited.

The Objective of the Issue

Indel Money Limited intends to allocate the proceeds from the funds raised for two primary objectives. The first is to support onward lending and financing activities and to repay or prepay the principal and interest on the company’s existing borrowings. Secondly, the funds will also be used to meet general corporate purposes, thereby supporting the company’s overall operational needs and strategic initiatives.

How to Apply

Wait for the NCD to open for subscription, then click on this link to apply for the Indel Money Limited NCD with Bigul https://ncd.bonanzaonline.com/.

How to Check Allotment Status

The registrar for Indel Money Limited NCD is Link Intime India Private Ltd. To check your allotment status, please click on this link https://linkintime.co.in/

FAQs

1. When will the Indel Money NCD June 2023 public issue be launched? 
The Indel Money NCD June 2023 public issue will open for subscription on June 6, 2023, and is expected to close on June 19, 2023. Please note if the issue is fully subscribed before the closing date, it may close earlier. Allotments will be made on a first-come, first-served basis.
2. What are the key dates for the Indel Money NCD June 2023 issue? 
The Indel Money Limited NCD IPO will begin on June 6, 2023, and close on June 19, 2023.
3. What is the face value of each Indel Money NCD June 2023 bond?
Each NCD in the June 2023 issue will be issued with a face value of Rs 1000.
4. What is the interest payment frequency for Indel Money NCD June 2023? 
The interest payments for the Indel Money NCD June 2023 will be made monthly and cumulative.
5. What is the minimum application size for investing in the Indel Money NCD June 2023 public issue? 
Investors must apply for a minimum of 10 NCDs, with subsequent applications in multiples of one NCD.
6. When does the Indel Money NCD June 2023 subscription close? 
The subscription for the Indel Money NCD June 2023 will be open on working days from 10:00 a.m. to 5:00 p.m. until June 19, 2023. However, the subscription may close earlier if fully subscribed.
7. What are the maturity periods of the Indel Money NCD June 2023 bonds? 
The Indel Money NCD June 2023 bonds have a predetermined maturity date of 400 days, 24 months, 61 months, and 72 months.
8. What is the issue size of the Indel Money NCD June 2023? 
The Indel Money NCD June 2023 comprises a base issue size of Rs 50.00 Crores and a shelf issue size of Rs 100.00 Crores. A shelf issue is an option that allows the company to retain oversubscription above the base issue size.
9. Are NRIs eligible to apply for the Indel Money Limited NCD IPO? 
No, NRIs cannot apply to this particular issue.
10. Who is ineligible to invest in the Indel Money Limited issue? 
The following entities are ineligible to invest in this issue: Minors without a guardian, foreign nationals, persons resident outside India, foreign portfolio investors, foreign venture capital investors, qualified foreign investors, overseas corporate bodies, and individuals who are ineligible to contract under applicable statutory or regulatory requirements.
11. On which stock exchange is the Indel Money Limited NCD proposed to be listed? 
The NCDs from this issue are proposed to be listed on the BSE.