Redeemable Non-Convertible Debentures (NCDs) and Unsecured Redeemable Non-Convertible Debentures (Unsecured NCDs)
Mumbai, September 23, 2021: Indel Money Limited, a non-deposit taking and a non – systemically important non-banking finance company (“NBFC”) in the gold loan sector, announced public issue of Secured and Unsecured NCDs of face value of Rs. 1,000 each. The Issue opens on September 23, 2021 and closes on Oct 18, 2021 (with an option of early closure in case of early over subscription)
- Secured and Unsecured NCDs of face value of Rs. 1,000 each
- The Issue includes a Base Issue Size for an amount of up to Rs.75 crore with an option to retain oversubscription up to Rs. 75 crore aggregating up to Rs.150 crore
- Issue opens on September 23, 2021 and closes on Oct 18, 2021
- NCDs proposed to be issued under this Issue are rated as CRISIL BBB/ Stable by CRISIL Ratings Limited
- Doubling of investment in 71 months – Option XI
- Coupon Rate of up to 12.00% per annum
- Tenor for Secured NCDs ranging from 366 days to 54 months and tenor for Unsecured NCDs ranging from 61 to 71months
- Minimum application size Rs. 10,000across all Options of NCDs
- NCDs will be traded in dematerialised form
- The NCDs are proposed to be listed on BSE Limited
Mr. Umesh Mohanan, Executive Director and CEO, Indel Money said,” Our business strategy is designed to capitalize on our competitive strengths and enhance our position in the Gold Loan industry and to expand our presence. Our prudent risk management policies and development of tailored credit procedures will allow us to expand our Gold Loan financing. This NCD funds will help us expand our borrowing mix. “
The Secured and Unsecured NCDs come with the face value of Rs. 1,000 each. The issue includes a Base Issue Size for an amount of up to Rs. 75 crore with an option to retain oversubscription up to Rs. 75 crore aggregating up to Rs.150 crore. The Lead Manager to the Issue is Vivro Financial Services Private Limited.
The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/ prepayment of principal and interest on borrowings of the Company (at least 75%) and general corporate purposes* (maximum of up to 25%).
*The Net Proceeds will be first utilized towards the Objects mentioned above. The balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the gross proceeds, in compliance with the SEBI NCS Regulations
Notes to the Editor: Indel Money Limited
We are a non-deposit taking and a non – systemically important non-banking finance company (“NBFC”) in in the gold loan sector lending money against the pledge of household gold jewellery (“Gold Loans”) in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana and the union territory of Puducherry. We also provide loans against property, business loans and personal loans. Our Gold Loan portfolio as on March 31, 2021, March 31, 2020, and March 31, 2019 amounted to Rs.309.97 crores, Rs.295.8 crores and Rs.193.8 crores which is 77.72%, 87.99% and 84.43% of our total loans and advances as on such specific dates. We, as on August 31 2021, had a network of 191 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana and the union territory of Puducherry.
We are registered with RBI as a non-deposit taking, NBFC (registration no. B-13.01564 dated February 13, 2002) under Section 45 IA of the Reserve Bank of India Act, 1934. Further, our Company has applied to RBI on August 30, 2021 for change the name in RBI license from ‘Indel Money Private Limited’ to ‘Indel Money Limited’ consequent upon its conversion as a public limited company and receipt of revised certificate of incorporation from RoC, dated August 26, 2021.
Our Company belongs to the Indel Group, which was founded by Late Mr. Palliyil Janardhanan Nair. The Indel Group entered into the regulated financial services business at a small village in Palakkad, Kerala under a State Government Money lenders license. Over the years the Group has diversified its presence from being a financial services company to automobile dealership, hospitality, infrastructure development, media, communication and entertainment.
Indel Money Limited is subject to market conditions and other considerations, proposing a public issue of Secured and Unsecured Redeemable Non-Convertible Debentures and has filed a Prospectus dated September 20, 2021 (“Prospectus”) with the Registrar of Companies, Maharashtra at Mumbai, BSE Limited (“BSE”) and Securities and Exchange Board of India (“SEBI”). The Prospectus is available on our website, on the website of the stock exchange and on the website of the Lead Manager. All investors proposing to participate in the public issue of NCDs by Indel Money Limited should invest only on the basis of the information contained in the Prospectus. Please see the section titled “Risk Factors” beginning on page 15 of the Prospectus for risk in this regard.