18-Jan-2024
2 mins read
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On Wednesday, Indel Money, a non-banking finance company specialising in gold loans, announced its fourth public issuance of secured Non-Convertible Debentures (NCDs), each with a face value of Rs 1,000. This offering will open on January 30, 2024, and is set to close on February 12, 2024, although it may end earlier if there is an early over-subscription. The issuance is planned with a base size of up to Rs 100 crore and an option to retain additional subscriptions up to Rs 100 crore, bringing the potential total to Rs 200 crore. Vivro Financial Services has been appointed as the lead manager for this issue.
Indel Money Limited Company Profile
Established in 1986, Indel Money Limited operates as a non-deposit-taking, non-banking financial company (NBFC) recognised by the Reserve Bank of India (RBI). The firm primarily provides gold loans, offering financial assistance against the collateral of household gold jewellery. Indel Money also extends its services to include property, business, and personal loans.
As of September 30, 2023, Indel Money’s total loan and advance portfolio stood at Rs 67,132.98 lakhs. The fiscal years 2023, 2022, and 2021 contributed Rs 50,635.60 lakhs, Rs 42,135.99 lakhs, and Rs 30,994.35 lakhs, respectively. These figures constituted 82.13%, 78.18%, 80.46%, and 77.71% of the company’s total loan portfolio in each respective year.
Indel Money’s primary clientele for its gold loans are individuals from rural and semi-urban locations. By September 2023, the company had expanded its presence to 250 branches across several Indian states, including Kerala, Tamil Nadu, Karnataka, Odisha, Maharashtra, Telangana, and the union territory of Puducherry. To manage loans and related activities efficiently, Indel Money utilises a centralised IT platform that integrates all branch details. The company has embraced digital innovation by launching web applications on both the Google Play and iOS App Store. Furthermore, the company has introduced E-Connect, a web-based payment portal, enhancing the efficiency of its business operations. As of the same date, Indel Money employed 1,201 staff members.
The company’s competitive strengths lie in its status as a non-deposit-taking NBFC backed by a long history of operations in the South Indian gold loan market. It offers long-term gold loan schemes advantageous to its customers, including doorstep delivery services. Its well-established and expanding network of branches in rural and semi-urban areas of South India, coupled with an experienced management team and skilled personnel, further solidifies its position in the market.
The Objective of Indel Money Limited NCD 2024
Indel Money Limited has outlined specific objectives for utilising the funds raised through its recent initiative. The primary focus is using these funds for onward lending and financing activities. This approach is intended to expand and enhance the company’s lending capacity. Additionally, a portion of the funds will be allocated towards the repayment or prepayment of both the principal and interest components of the company’s existing borrowings.
Apart from these specific financial objectives, the company also plans to allocate funds for general corporate purposes. This broad category includes various operational and strategic expenses essential for the company’s day-to-day functioning and long-term corporate growth.
Financial Performance of Indel Money Limited (In Rs Crore)
For the financial year concluding on March 31, 2023, Indel Money Limited witnessed significant growth in its financial metrics. The company’s revenue saw an impressive increase of 52.28% compared to the previous financial year, ending on March 31, 2022. Additionally, the profit after tax (PAT) experienced a remarkable surge, escalating by 871.56% over the same period.
| Period Ended | 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 1,133.80 | 1,013.90 | 736.8 | 502.2 |
| Revenue | 143.4 | 187.3 | 123 | 94.7 |
| Profit After Tax | 28.6 | 20.5 | 2.11 | 8.7 |
| New Worth |
Important Details of Indel Money Limited NCD 2024
| Issue Open | January 30, 2024 – February 12, 2024 |
| Security Name | Indel Money Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | 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 | CRISIL BBB+/Stable by by CRISIL Ratings Limited |
| Tenor | 366 days, 24, 36, 60 and 72 months |
| Series | Series I to VIII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
NCD Allocation Ratio
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 40% |
| Retail | 50% |
| Category 4 | 0% |
Coupon Rates of Indel Money Limited NCD 2024
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 |
| Frequency of Interest Payment | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative | Monthly | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 366 Days | 366 Days | 24 Months | 24 Months | 36 Months | 36 Months | 60 Months | 72 Months |
| Coupon (% per Annum) | 9.00% | NA | 9.75% | NA | 10.75% | NA | 11.50% | NA |
| Effective Yield (% per Annum) | 9.38% | 9.00% | 10.20% | 9.75% | 11.30% | 10.75% | 12.13% | 12.25% |
| Amount on Maturity (In Rs) | Rs 1,000 | Rs 1,090 | Rs 1,000 | Rs 1,204.51 | Rs 1,000 | Rs 1,358.41 | Rs 1,000 | Rs 2,000.41 |
NCD Rating
During the financial year that ended on March 31, 2023, Indel Money Limited demonstrated substantial growth in its financial performance. The company’s revenue registered a robust increase of 52.28% compared to the financial year that concluded on March 31, 2022. In parallel, there was an extraordinary rise in the profit after tax (PAT), which soared by 871.56% during this timeframe.
Lead Manager of Indel Money Limited NCD 2024
The lead manager for thendel Money Limited NCD 2024 is Vivro Financial Services Private Limited.
How to Apply for Indel Money Limited NCD 2024
Wait for the NCD to open for subscription, then click on this link to apply for the Indel Money Limited NCD 2024 with Bigul: https://ncd.bonanzaonline.com/.
How to Check the Allotment Status of Indel Money Limited NCD 2024
The Indel Money Limited NCD 2024 registrar is Link Intime India Private Ltd. To check your allotment status, please click on this link: https://linkintime.co.in/mipo/ipoallotment.html.
FAQs
- When will the Indel Money Limited NCD 2024 be open for subscription?
The subscription for the NCD opens on January 30, 2024, and is scheduled to close on February 12, 2024. However, the issue may close earlier in the case of early over-subscription.
- What is the issue size and price of the NCD?
The base issue size is Rs 100 crore with an option to retain over-subscription up to Rs 100 crore, totalling Rs 200 crore. The issue price is Rs 1,000 per NCD.
- What are the main objectives of the Indel Money Limited NCD 2024?
The funds raised will be used for onward lending, financing, repayment/prepayment of principal and interest on borrowings, and general corporate purposes.
- How has Indel Money Limited performed financially?
For the fiscal year ending March 31, 2023, the company saw a 52.28% increase in revenue and an 871.56% rise in profit after tax compared to the previous year.
- What types of loans does Indel Money Limited offer?
Indel Money offers gold loans, loans against property, business loans, and personal loans.
- How can I apply for the Indel Money Limited NCD 2024?
Wait for the NCD to open for subscription, then click on this link to apply for the Indel Money Limited NCD 2024 with Bigul: https://ncd.bonanzaonline.com/.
- How can I check the allotment status of the NCD?
The Indel Money Limited NCD 2024 registrar is Link Intime India Private Ltd. To check your allotment status, please click on this link: https://linkintime.co.in/mipo/ipoallotment.html.
- What are the tenors and coupon rates for the NCD?
The NCDs offer tenors of 366 days, 24, 36, 60, and 72 months, with coupon rates varying from 9.00% to 11.50% per annum, depending on the series and tenor.
- Who is the lead manager for the Indel Money Limited NCD 2024?
Vivro Financial Services Private Limited is the lead manager for this NCD issue.