Chemmanur Credits March 26, Tranche VIII NCD Issue review - (Not Rated)

•    This is the 8th Debt issue from CCIL since December 2022. 
•    The last debt offer was in October 2025.
•    IND BBB-/Stable rating is considered to be an average grade indicating moderate risks.
•    The company has reduced the coupon rates at the base level.
•    There is no harm in skipping this debt issue despite attractive coupon rates. 

ABOUT COMPANY:
Chemmanur Credits and Investments Ltd. (CCIL) is a non-deposit taking, non-banking financial company (base layer) registered with the RBI, primarily engaged in the gold loan sector lending money against the pledge of household gold jewellery (“Gold Loans”) in the state of Kerala, Tamil Nadu, Karnataka Andhra Pradesh and Maharashtra. It also provides Microfinance Loans, business and personal loans, money transfer services and distribution of third-party insurance products. 

CCIL is a part of Boby Chemmanur Group which is engaged in diverse range of businesses and based in Kerala, India. The group has retail gold jewellery showrooms in USA and Middle East apart from those in India. The Boby Chemmanur Group has received BIS certification for purity of gold. Its schemes differ in relation to interest rate chargeable, amount advanced per gram of gold, tenure, amount of loan.

For the nine months period ended on December 31, 2025, and financial year ended on March 31, 2025, March 31, 2024 and March 31, 2023, the Company held 0.92 tonnes,1.05 tonnes, 1.04 tonnes, and 0.86 tonnes of gold jewellery respectively, as security for all Gold Loans.

As of December 31, 2025, it operated through 302 branches located across 6 states namely Kerala, Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh and Telangana managed through its registered office located at Thrissur, Kerala and the company had 1270 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its debt issue of 1000000 Secured, Redeemable, Non-convertible Debentures having a face value of Rs. 1000 each. This is the 8th debt offer from the company since December 2022. The company plans to mobilize Rs. 50.00 cr. as a base issue and green shoe option to retain Rs. 50.00 cr. oversubscription, thus making an overall issue size of Rs. 100.00 cr. The issue opens for subscription on March 02, 2026, and will close on or before March 16, 2026. The minimum application to be made is for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE. CCIL is spending Rs. 1.42 cr. for this debt issue process and from the net proceeds, it will utilize at least 75% for the purpose of onward lending, financing and repayment/prepayment of borrowings with interest, and maximum up to 25% for general corporate purposes. 

The issue is solely lead managed by Vivro Financial Services Pvt. Ltd., and KFin Technologies Ltd. is the registrar of the issue. Mitcon Credentia Trusteeship Services Ltd. is the Debenture Trustee. 

This debt offer has tenors of 400 days, 18 months, 24 months, 36 months, 61 months, and 72 months with coupon rates ranging from 10.25% to 12.00%. The interest payment frequency will be Monthly, or Cumulative as per the series opted by the investors. Though it offers lucrative coupon rates, average rating of BBB- remains major concern. 

The company has allocated 10% for Category I, 40% for Category II, and 50% for Category III.

ISSUE RATING:
This debt issue is rated IND BBB -/Stable by India Ratings & Research Pvt. Ltd. This rating indicates that instruments with this rating are considered to have moderate degree of safety regarding timely servicing of financial obligations and carry moderate credit risk. 

These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decisions. These ratings are subjected to a periodic review during which it may be affirmed, changed, suspended, withdrawn, or placed on rating watch, based on one or more specific events. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, CCIL has posted a total income/net profit/ -(loss) of Rs. 74.74 cr. / Rs. 9.24 cr. (FY21), Rs. 73.49 cr. / Rs. 2.66 cr. (FY22), and Rs. 83.21 cr. / Rs. 0.80 cr. (FY23), Rs. 106.15 cr. / Rs. 1.72 cr. (FY24), Rs. 141.74 cr. / Rs. 2.48 cr. (FY25). For 9M of FY26 ended on December 31, 2025, on unaudited basis, it earned a net profit of Rs. 12.62 cr. on a total income of Rs. 130.28 cr.

Its debt equity ratio as of December 31, 2025, at 4.96 will stand enhanced to 5.73 post this issue, and net NPA stood at 0.82% against 1.18% as of March 31, 2025.