June 2, 2025
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Chemmanur Credits and Investments NCD June 2025 Details
NCD Issue Opens on 3 June 2025
NCD Issue Closes on 16 June 2025
# NCD Guidance is given at the bottom of the post
About the Company:
Sakthi Finance was incorporated in the year 1955 and has a track record of nearly four decades in commercial vehicle financing segment. It is registered with RBI, under Section45-IA of the Reserve Bank of India Act, 1934, with Department of Non-Banking Supervision, Chennai, as a NBFC Deposit-taking -Investment and Credit Company. It is part of “Sakthi Group” of companies based in Coimbatore, South India, and a reputed and well-known Industrial conglomerate having major presence in sugar, industrial alcohol, automobile distribution, auto components, dairy, co-generation, wind energy and transportation. It is an Investment and Credit company with primary focus on financing pre-owned commercial vehicles.
It also provides finance for purchasing infrastructure construction equipment, multi-utility vehicles, cars, jeeps and other machinery. The finances provided are secured by lien on the assets financed.
Its target customers predominantly comprise Small / Medium Road Transport Operators (“SRTOs / MRTOs”) and primarily hail from rural / semi-urban area. The SRTOs / MRTOs looks for speedy disposal of finance at competitive rates. It has identified this opportunity and positioned ourselves between the organized banking sector and local money lenders by offering the finance at competitive rate with flexible and speedy lending services to its customers. It operates primarily in the Southern region of the country mainly in the States of Tamil Nadu and Kerala through its branch network and customer service points. It has network of53branches, located in Tamil Nadu, Kerala, Andhra Pradesh, Karnataka, Maharashtra, Haryana and Union Territory of Puducherry. In addition to finance business, it generates power from windmills and sell it to Tamil Nadu Electricity Board and Gujarat Urja Vikas Nigam Limited.
At present, it has 17 windmills with an aggregate capacity of 5,150 kW located in the States of Tamil Nadu and Gujarat. As on September 30, 2023, it has an AUM of Rs. 1,19,637.19lakh. Its AUM has grown from Rs. 1,09,353.73 lakh as of March 31, 2021to Rs. 1,14,500.10 lakh as of March 31, 2023, at a CAGR of 2.33%. The income from hire purchase business constitutes about 94% of operating income of the Company for the FY ended March 31, 2023. For FY 2023, the income from hire purchase business was Rs. 18,603.02lakh as against Rs. 16,446.30 lakh for FY 2021, registering a YoY growth of 13.11% and CAGR 4.19%
Get more details about the company @ http://www.chemmanurcredits.com
NCD Promoter:
The Promoter of the company is Chemmanur Devassykutty Boby
NCD Rating
The NCDs proposed to be issued under the Issue have been rated IND BBB-/Stable by India Ratings and Research Private Limited.
Chemmanur Credits and Investments NCD June 2025 Details
| Issue Open | June 3, 2025 – June 16, 2025 |
| 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 (Oversubscription) | Rs 50.00 Crores |
| Overall Issue Size | 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 | IND BBB-/Stable by India Ratings and Research Private Limited. |
| Tenor | 366 Days, 18, 24, 36, 60, and 70 Months |
| Series | Series I to VII |
| Payment Frequency | Monthly and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Mitcon Credentia Trusteeship Services Limited |
NCD Allocation Ratio
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 40% |
| Retail | 50% |
Chemmanur Credits And Investments June 25 NCD Coupon Rates
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | |
| Frequency of Interest Payment | Monthly | Monthly | Monthly | Monthly | Cumulative | Cumulative | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 18 Months | 24 Months | 36 Months | 60 Months | 366 Days | 24 Months | 70 Months |
| Coupon (% per Annum) | 10.50% | 10.90% | 11.30% | 12.00% | NA | NA | NA |
| Effective Yield (% per Annum) |
11.02% | 11.46% | 11.90% | 12.68% | 9.50% | 11.00% | 12.62% |
| Amount on Maturity (In Rs.) |
Rs 1,000.00 | Rs 10,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,095.27 | Rs 1,232.00 | Rs 2,000.28 |
Objects of the Issue
The company proposes to utilize the funds which are being raised through the Issue:
The Net Proceeds raised through this Issue will be utilized for the following purposes in the ratio provided below:
1) for onward lending, financing, and for repayment/prepayment of principal and interest of existing borrowings (including redemption of NCDs which would become due for redemption) of the Company.
2) for general corporate purposes.
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Chemmanur Credits And Investments Limited Financials
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets | 635.04 | 499.42 | 430.46 |
| Revenue | 106.14 | 83.21 | 73.49 |
| Profit After Tax | 1.72 | 0.8 | 2.66 |
| Net Worth | 0 | 0 | 0 |
| Reserves and Surplus | 29.03 | 27.41 | 26.52 |
| Total Borrowing | 0 | 0 | 0 |
| Amount in Rs. Crore |
Address of the Company
Chemmanur Credits And Investments Limited
Door No. D1 to D4, 3rd Floor
Avenue Tower, East Fort,
Thrissur East, Thrissur-680005
NCD Lead Managers
Vivro Financial Services Pvt ltd
NCD Registrar
Kfin Technologies Ltd
Chemmanur Credits and Investments Ltd. (CCIL) – NCD Issue Review
Chemmanur Credits and Investments Ltd. (CCIL) is a non-deposit-taking, non-banking financial company (NBFC) classified under the base layer by the Reserve Bank of India (RBI). The company primarily operates in the gold loan segment, offering loans secured against household gold jewellery. Its operations are concentrated across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Maharashtra. In addition to gold loans, CCIL also provides microfinance loans, business and personal loans, domestic money transfer services, and distributes third-party insurance products.
NCD Issue Details
CCIL is launching its sixth secured, redeemable, non-convertible debenture (NCD) issue since December 2022. The debentures have a face value of Rs.1,000 each. The base issue size is Rs.50 crore, with a green shoe option to retain oversubscription of up to Rs.50 crore, taking the total issue size to Rs.100 crore.
Financial Performance
CCIL’s financial performance over the last four fiscal years reflects modest profitability:
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FY21: Total Income – Rs.74.74 crore | Net Profit – Rs.9.24 crore
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FY22: Total Income – Rs.73.49 crore | Net Profit – Rs.2.66 crore
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FY23: Total Income – Rs.83.21 crore | Net Profit – Rs.0.80 crore
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FY24: Total Income – Rs.106.15 crore | Net Profit – Rs.1.72 crore
For the nine months ended December 31, 2024 (9M FY25), the company reported a total income of Rs.103.87 crore and a net profit of Rs.1.02 crore. Overall, the company’s profitability remains moderate.
As of December 31, 2024, the company’s debt-to-equity ratio stood at 4.93, and is expected to rise to 5.88 post-issue. Its net NPA increased to 1.04%, up from 0.38% as on March 31, 2024.
Credit Rating and Investment Considerations
The current NCD issue has been rated IND BBB-/Stable by India Ratings & Research Pvt. Ltd. This rating signifies a moderate degree of safety with respect to timely servicing of financial obligations and indicates moderate credit risk.
While the company has adjusted its coupon structure—raising the base rate and lowering the upper cap—it continues to offer relatively attractive returns for investors willing to accept moderate risk levels.
Conclusion
CCIL’s NCDs may appeal to investors seeking higher yields and who are comfortable with moderate risk, particularly given the average credit rating. However, the company’s high leverage and modest profitability warrant a cautious approach.
Chemmanur Credits and Investments
NCD June 2025 subscription Status
On 3.06.2025@ 5.00
