26-Oct-2023
2 mins read
Chemmanur Credits and Investments Ltd has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on October 16, 2023, and closes on October 30, 2023. It will have base issue size of Rs 50 crore.
About Chemmanur Credits and Investments Limited
Chemmanur Credits and Investments Limited, a non-deposit-taking, non-banking financial company approved by the RBI, primarily operates in the gold loan sector, extending loans against household gold jewellery in the states of Kerala, Tamil Nadu, and Karnataka. They also offer Microfinance Loans, business and personal loans, money transfer services, and distribute third-party insurance products.
The company has 13 years of lending experience and operates through 222 branches in 5 states in India, including Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, and Maharashtra, as of September 30, 2023. These operations are managed from their registered office in Thrissur, Kerala, with a workforce of 1172 employees.
Chemmanur Credits and Investments Limited is a part of the Boby Chemmanur Group, a diversified conglomerate also based in Kerala, India. The group has a presence in various businesses, including retail gold jewellery showrooms in the USA, the Middle East, and India, all of which have received BIS certification for gold purity.
Financial Performance of Chemmanur Credits and Investments Limited
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 499.42 | 430.46 | 384.99 |
| Revenue | 83.21 | 73.49 | 74.74 |
| Profit After Tax | 0.8 | 2.66 | 9.24 |
| Net Worth | 85.32 | 88.05 | 87.94 |
| Reserves and Surplus | 27.41 | 28.05 | 27.94 |
Chemmanur Credits and Investments Limited NCD Details
| Issue Open | October 16, 2023 – October 30, 2023 |
| Security Name | Chemmanur Credits and Investments 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 | CRISIL BBB-/Stable |
| Tenor | 366 days, 18, 24, 36, 60, 12 and 74 months |
| Series | Series I to VIII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
NCD Allocation Ratio of Chemmanur Credits and Investments Limited NCD
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 40% |
| Retail | 50% |
Chemmanur Credits and Investments Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 |
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Monthly | Cumulative | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 366 Days | 18 Months | 24 Months | 36 Months | 60 Months | 12 Months | 24 Months | 74 Months |
| Coupon (% per Annum) | 9.50% | 10.50% | 10.75% | 11.00% | 11.50% | NA | NA | NA |
| Effective Yield (% per Annum) | 9.92% | 11.02% | 11.30% | 11.57% | 12.13% | 9.50% | 10.75% | 11.90% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,095.00 | Rs 1,226.56 | Rs 2,000.00 |
NCD Rating of Chemmanur Credits and Investments Limited NCD
The NCDs proposed to be issued under this Issue have been rated ‘CRISIL BBB-/Stable’ by CRISIL Ratings Limited.
Company Promoters of Chemmanur Credits and Investments Limited
The promoter of the company is Chemmanur Devassykutty Boby.
The Objective of the Chemmanur Credits and Investments Limited NCD
The company intends to utilize the funds raised through the Issue for the following purposes:
- Onward lending, financing, and repayment/prepayment of principal and interest on the Company’s borrowings.
- General corporate activities.
Chemmanur Credits and Investments Limited NCD Lead Manager(s)
The lead manager of the NCD is Vivro Financial Services Private Limited.
How to Apply for Chemmanur Credits and Investments Limited NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the Chemmanur Credits and Investments Limited NCD with Bigul https://ncd.bonanzaonline.com/.
How to Check Allotment Status of Chemmanur Credits and Investments Limited NCD
The registrar for Chemmanur Credits and Investments Limited NCD is KFin Technologies Limited. To check your allotment status, please click on this link https://karisma.kfintech.com/
FAQs
- What is Chemmanur Credits and Investments Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by Chemmanur Credits and Investments Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The main goal of this offering is to use the net proceeds for onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company. A portion will also be utilized for general corporate activities.
- What is the issue size and price of the NCD?
The base issue size is Rs 50 crore, with a green shoe option potentially taking the total to Rs 100 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on October 16, 2023, and closes on October 30, 2023.
- How has the NCD been rated?
The NCD has received a CRISIL BBB-/Stable.
- Who are the promoters behind the company?
The company is promoted by Chemmanur Devassykutty Boby.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) in a dematerialized format.
- Who are the lead managers for this NCD issue?
The NCD is being led by Vivro Financial Services Private Limited.
- How can I apply for the Chemmanur Credits and Investments Limited NCD?
Once the NCD opens for subscription, you can apply through this link: Chemmanur Credits and Investments Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is KFin Technologies Limited. You can check your allotment status by visiting this link.
- How many series of NCDs are available, and what are their respective tenures?
There are 8 series of NCDs available with varying tenures of 366 days, 18, 24, 36, 60, 12 and 74 months.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Mitcon Credentia Trusteeship Services Limited
- What are the payout options for these NCDs?
Investors have the flexibility to choose between monthly or cumulative interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, Chemmanur will allocate the debentures to applicants on a proportional basis.