Chemmanur Credits and Investments Limited – Company Overview & NCD Issue Details
Chemmanur Credits and Investments Limited (CCIL) is a prominent Non-Banking Financial Company (NBFC) registered in December 2008 under CIN – U65923KL2008PLC023560.
The headquarters of the company is at Door No. D1-D4, 3rd Floor, Avenue Tower, East Fort, Thrissur, Kerala – 680005.
CCIL is registered with the Reserve Bank of India (RBI) under registration number N-16-00185, allowing it to provide lending services but not take public deposits.
The key business of the company lies in gold loans, which are secured by pledged household gold jewellery, and spread over Kerala, Tamil Nadu, Karnataka, Maharashtra, and Andhra Pradesh.
In addition to gold loans, the company also offers microfinance, business loans, personal loans, and money-transfer and insurance distribution services.
CCIL is owned by the well-known Boby Chemmanur Group, one of the largest jewellery retail business groups with a strong presence.
Financial & Regulatory Highlights
- Paid-up Capital: ₹74 crore
- Authorised Capital: ₹150 crore (according to MCA records)
- FY2023 Financials:
Revenue from Operations: ₹83.21 crore
Profit After Tax (PAT): ₹0.80 crore
- Branch Network: Around 282 branches spread across five states
- Employees: Around 1,424 employees (as of September 2024)
Latest NCD Public Issue Overview
Chemmanur Credits and Investments Limited recently floated a Secured, Redeemable, Non-Convertible Debenture (NCD) public issue to raise funds for business growth.
Issue Highlights:
- Issue Size: Base ₹50 crore with a Green Shoe Option of up to ₹100 crore
- Face Value: ₹1,000 per NCD
- Tenure Options: 366 days, 18 months, 24 months, 36 months, 60 months, and 70 months
- Interest Payout: Monthly or cumulative basis
- Effective Yield: Ranges between 9.50% and 12.68% per annum (dependent on the chosen series)
- Minimum Investment: ₹10,000 (10 NCDs of ₹1,000 each)
Chemmanur Credits NCD strengths
- Strong specialization in gold-loan financing, supported by secured collateral.
- Portfolio of loans diversified across various southern states.
- Status as a secured NCD issue provides improved investor protection than in the case of unsecured bonds.
Important Points to Consider
- Credit rating of IND/CRISIL BBB-/Stable reflects moderate credit risk.
- Exposure to the gold-loan segment, which is subject to volatility in gold prices.
- Limited secondary market liquidity would impact early redemption options for investors.