Chanakya

Chemmanur Credits & Investments NCD August 2026

NCD Issue Opens on 4 August 2026
NCD Issue Closes on 17 August 2026

NCD Review/Guidance is given at the bottom of the post

About Chemmanur Credits and Investments Limited

Chemmanur Credits and Investments Limited, incorporated in 2008, is an RBI-registered, non-deposit-taking NBFC classified in the Base Layer. Its principal business is providing loans against pledged household gold jewellery, primarily across South India.

The company also offers microfinance loans, business and personal loans, money-transfer services and distribution of third-party insurance products. As of 30 June 2026, it operated 302 branches across Kerala, Tamil Nadu, Karnataka, Maharashtra, Telangana and Andhra Pradesh, with 1,268 employees.

Chemmanur Credits is part of the Boby Chemmanur Group, which has interests in gold jewellery and related businesses in India, the US and the Middle East. The company’s lending operations remain concentrated in gold loans, which are secured by pledged jewellery but remain exposed to borrower defaults, gold-price fluctuations and operational risks.

Get more details from the official Chemmanur Credits website.

NCD Promoter: Chemmanur Devassykutty Boby


Chemmanur Credits NCD Rating

S.No. Rating Agency NCD Rating Outlook Safety Degree Risk Degree
1 India Ratings & Research Pvt. Ltd. IND BBB Stable Moderate degree of safety Moderate credit risk

The IND BBB/Stable rating indicates a moderate degree of safety regarding timely servicing of financial obligations. It is not equivalent to the higher safety offered by AAA or AA-rated debt securities.

The August 2026 issue received an upgraded IND BBB/Stable rating through a rating letter dated 26 June 2026. Investors should nevertheless review the rating rationale and monitor future rating actions. The issue terms and rating are confirmed in the company’s official abridged prospectus.

Chemmanur Credits and Investments NCD August 2026 Details

Particulars Details
Issue Open 4 August 2026
Issue Close 17 August 2026
Security Name Chemmanur Credits and Investments Limited
Security Type Secured, Redeemable, Non-Convertible Debentures
Base Issue Size Rs. 75.00 Crore
Oversubscription Option Rs. 75.00 Crore
Overall Issue Size Rs. 150.00 Crore
Issue Price Rs. 1,000 per NCD
Face Value Rs. 1,000 per NCD
Minimum Lot Size 10 NCDs
Minimum Investment Rs. 10,000
Market Lot 1 NCD
Listing At BSE
Basis of Allotment First Come, First Served; proportionate on the day of oversubscription
Debenture Trustee Mitcon Credentia Trusteeship Services Ltd.
Lead Manager Vivro Financial Services Pvt. Ltd.
Registrar Kfin Technologies Ltd.

The issue may close earlier if it receives sufficient demand. Investors seeking a specific series should therefore avoid waiting until the final day.

Chemmanur Credits NCD Allocation

Investor Category Allocation NCDs Reserved
Institutional 10.00% 75,000
Non-Institutional 40.00% 3,00,000
Retail 50.00% 3,75,000
Total 100.00% 7,50,000

Half of the base issue is reserved for retail investors. However, category reservation does not guarantee allotment when applications exceed the available NCDs.


Chemmanur Credits NCD Coupon Rates

Particulars Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7
Interest Payment Monthly Monthly Monthly Monthly Cumulative Cumulative Cumulative
Nature Secured Secured Secured Secured Secured Secured Secured
Tenor 18 Months 24 Months 36 Months 61 Months 400 Days 24 Months 72 Months
Coupon Rate 10.25% 10.80% 11.25% 12.00% NA NA NA
Effective Yield 10.75% 11.35% 11.85% 12.68% 9.25% 11.00% 12.25%
Amount on Maturity per NCD Rs. 1,000.00 Rs. 1,000.00 Rs. 1,000.00 Rs. 1,000.00 Rs. 1,101.81 Rs. 1,232.00 Rs. 2,000.00

Monthly-income investors may consider Series 1 to Series 4 depending on their preferred tenure. Series 4 offers the highest monthly coupon of 12.00% per annum, with an effective yield of 12.68%.

Investors seeking cumulative growth may consider Series 5, Series 6 or Series 7. Series 7 doubles the investment to Rs. 2,000 per NCD over 72 months but creates the longest exposure to the issuer’s credit risk.

The highest stated yield should not be the sole selection criterion. Investors should match the tenure with their liquidity requirements and ability to accept moderate credit risk.

Which Chemmanur Credits NCD Series Is Best?

Investor Requirement Relevant Series Chanakya View
Shorter holding period Series 5 – 400 Days Lower tenure, but effective yield is only 9.25%
Monthly income with shorter tenure Series 1 – 18 Months Suitable for investors avoiding longer lock-in
Monthly income with balanced yield Series 2 or Series 3 Better yield with moderate tenure
Highest monthly coupon Series 4 – 61 Months Attractive income, but longer credit exposure
Cumulative medium-term investment Series 6 – 24 Months Rs. 1,232 maturity value
Long-term wealth accumulation Series 7 – 72 Months Investment doubles, but risk continues for six years

Chanakya Preference: Series 2 or Series 3 may provide a better balance between yield and tenure for moderate-risk investors. Series 4 and Series 7 should be considered only by investors comfortable with longer exposure to a BBB-rated issuer.


Objects of the NCD Issue

S.No. Objects
1 Onward lending and financing activities
2 Repayment or prepayment of principal and interest on existing borrowings
3 General corporate purposes

The proceeds will primarily support the company’s lending operations and liability management. Unlike an equity issue, NCD proceeds do not dilute the ownership of existing shareholders. However, issuing additional debt increases the company’s repayment obligations.


Chemmanur Credits Financial Information

Particulars (Rs. Crore) FY26 FY25 FY24
Assets 865.09 693.18 635.05
Total Income 179.74 141.74 106.15
Profit After Tax 20.07 2.48 1.72
Net Worth 132.63 105.06 81.25

Chanakya Interpretation

Chemmanur Credits reported a 27% increase in total income to Rs. 179.74 crore in FY26, while PAT increased sharply from Rs. 2.48 crore to Rs. 20.07 crore. Assets expanded by approximately 25%, and net worth increased by 26%.

The improvement in profitability is encouraging, but investors should examine whether the FY26 earnings growth is sustainable. An NBFC’s ability to service NCDs depends on asset quality, interest spreads, liquidity, borrowing costs and timely recovery of loans—not merely reported profit growth.


Chemmanur Credits NCD Subscription Status

As of 7 August 2026 at 5:00 PM, the issue was subscribed 1.12 times overall.

Investor Category Subscription
Retail 0.57x
Non-Institutional 2.09x
Institutional 0.04x
Total 1.12x

The strong non-institutional response lifted overall subscription above one time, while retail and institutional participation remained comparatively moderate. Subscription figures are dynamic and should be checked again before applying.


Key Strengths

✅ Secured NCDs backed by a charge over identified company assets.

✅ Attractive coupon rates of up to 12.00% per annum.

✅ Effective yields ranging up to 12.68% per annum.

✅ Gold-loan business supported by tangible collateral.

✅ Network of 302 branches across six states.

✅ FY26 income increased by 27%, while net worth rose to Rs. 132.63 crore.

✅ Multiple monthly and cumulative options for different income requirements.

✅ Minimum investment of only Rs. 10,000.


Key Risks

⚠ The IND BBB/Stable rating indicates moderate credit risk, not high safety.

⚠ Secured NCDs are not risk-free; repayment still depends on the issuer’s financial position.

⚠ The company operates in the NBFC sector and depends on continuous access to borrowed funds.

⚠ Gold-price corrections may affect collateral coverage and loan recoveries.

⚠ Microfinance, business and personal loans may carry higher credit risk than gold loans.

⚠ Longer-tenure series expose investors to company-specific credit risk for up to six years.

⚠ Listed NCDs may have limited secondary-market liquidity.

⚠ Interest income is taxable according to the investor’s applicable tax slab.

⚠ NCDs are not covered by bank deposit insurance.


Address of the Company

Chemmanur Credits and Investments Limited
Door No. D1 to D4, 3rd Floor
Avenue Tower, East Fort
Thrissur, Kerala – 680005
Phone: +91 487-7121200
Email: cs@chemmanurcredits.com

NCD Registrar

Kfin Technologies Ltd.
Phone: 040-79615565
Email: ccil.ncdipo@kfintech.com

NCD Lead Manager

Vivro Financial Services Pvt. Ltd.

Chemmanur Credits NCD August 2026 Review

Chemmanur Credits NCD August 2026 offers attractive monthly and cumulative options, with coupon rates of up to 12.00% and an effective yield of up to 12.68%. The secured nature of the debentures and the company’s gold-loan portfolio provide some comfort, while FY26 financial performance shows substantial improvement.

However, the issue carries an IND BBB/Stable rating, representing moderate safety and moderate credit risk. Investors should not compare these NCDs directly with bank fixed deposits or government securities. Higher returns are being offered because the credit and liquidity risks are also higher.

The issue is more suitable for informed investors who understand NBFC credit risk and can diversify their fixed-income portfolio. Conservative investors prioritising capital safety should prefer AAA-rated NCDs, high-quality bonds, bank deposits or government-backed instruments even if their returns are lower.

Investors should avoid placing a disproportionately large amount in one issuer merely to earn a higher coupon. Exposure should be restricted to a manageable portion of the overall debt portfolio.


Who Should Invest in Chemmanur Credits NCD?

Investor Type Suitability
Investors seeking monthly income 🟡 Selective
Investors seeking returns above bank FDs 🟡 Suitable with moderate risk
Conservative capital-protection investors 🔴 Avoid
Investors comfortable with BBB-rated debt 🟢 May Consider
Investors requiring easy liquidity 🔴 Not Suitable
Investors with a diversified debt portfolio 🟡 Selective Allocation

Frequently Asked Questions

What is the Chemmanur Credits NCD August 2026 issue?
It is a public issue of secured, redeemable, non-convertible debentures with a base size of Rs. 75 crore and an oversubscription option of Rs. 75 crore, taking the overall issue size to Rs. 150 crore.

What is the minimum investment in Chemmanur Credits NCD?
The minimum application is 10 NCDs of Rs. 1,000 each, requiring an investment of Rs. 10,000.

What is the highest interest rate offered by Chemmanur Credits NCD?
The highest monthly coupon is 12.00% per annum under Series 4. The highest effective yield is 12.68%.

Is Chemmanur Credits NCD secured?
Yes. The NCDs are secured by a charge over identified assets. However, secured status does not eliminate credit, delay, recovery or liquidity risks.

What is the credit rating of Chemmanur Credits NCD?
The issue is rated IND BBB/Stable by India Ratings & Research, indicating moderate safety and moderate credit risk.

When does Chemmanur Credits NCD close?
The issue is scheduled to close on 17 August 2026, although it may close earlier in accordance with the offer terms.

Is Chemmanur Credits NCD better than a bank fixed deposit?
The NCD offers a higher return than many bank fixed deposits but also carries materially higher credit and liquidity risks. It is not protected by deposit insurance.

Which Chemmanur Credits NCD series is suitable for monthly income?
Series 1 to Series 4 provide monthly interest. Series 2 or Series 3 may offer a more balanced combination of tenure and yield, while Series 4 offers the highest coupon but requires longer exposure.


Chanakya Final View

Chemmanur Credits NCD August 2026 offers an attractive yield for investors willing to accept moderate credit risk. The rating upgrade to IND BBB/Stable, growing asset base, stronger net worth and improved FY26 profitability are positive factors.

Nevertheless, the BBB rating, NBFC funding risks and long tenures require caution. Investors should not select Series 4 or Series 7 solely because they offer the highest returns. A shorter or medium tenure may provide a better balance between income and credit exposure.

Chanakya Recommendation: 🟡 SELECTIVE APPLY

Suitable for well-informed, moderate-to-high-risk investors with surplus funds. Conservative investors should prefer higher-rated fixed-income alternatives. Investment should remain limited and diversified across issuers.

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