Chemmanur Credits and Investments Limited Bond Issue 2025: A Secure Fixed-Income Investment Opportunity
Chemmanur Credits and Investments Limited, a reputed non-banking financial company (NBFC) under the Boby Chemmanur Group, has launched a fresh bond issue in 2025, offering investors an attractive chance to secure steady returns through redeemable, non-convertible debentures (NCDs). This comprehensive article covers the important details about the bond issue, the company’s business operations, financial performance, and why this bond issue could be an enticing addition to conservative portfolios seeking fixed income.
Chemmanur Credits is a prominent player in the Indian NBFC sector primarily engaged in providing gold loans to retail customers. Established in 2008, the company has rapidly grown its footprint across Southern India, including states like Kerala, Tamil Nadu, Karnataka, with expansion into Maharashtra and Andhra Pradesh. The group’s diversified business expertise adds strategic depth to Chemmanur Credits, particularly in finance, jewelry retail, and allied services.
Bond Issue Details
The current bond issue by Chemmanur Credits opened on June 3, 2025, and will close on June 16, 2025. The issue seeks to raise a base amount of Rs 50 crore with an overall target of Rs 100 crore, inclusive of oversubscription options. These bonds are secured, giving investors a layer of protection backed by the company’s assets.
The issue price per bond is Rs 1,000, and investments must be made in lots of 10 bonds or multiples thereof. The bonds are listed on the Bombay Stock Exchange (BSE), providing added liquidity and transparency. The credit rating assigned to these NCDs is IND BBB-/Stable, reflecting moderate risk with an investment-grade safety profile.
Several series of bonds with varying tenors are offered to suit different investor needs. The tenors range from 366 days up to 70 months, making them versatile for short to medium-term fixed income investments.
Attractive Interest Rates and Payment Options
Investors can choose from multiple interest rate options depending on the bond series and tenure.
- Interest rates range from 9.50% to 12.62% annually.
- Payment frequencies include monthly, annual, or cumulative interest options.
- For shorter tenors like 12 months, rates are competitive, typically around 11%, while longer tenors yield closer to 12.62%.
These high coupon rates are especially appealing given the general low-interest scenario in the broader market, making Chemmanur Credits’ bonds a viable choice for income-focused investors.
Business and Revenue Overview
Chemmanur Credits’ dominant business line is gold loan financing, where customers pledge their gold jewelry as collateral to access quick loans. This sector remains robust in India, driven by cultural affinity for gold and the need for easily accessible credit.
As of the fiscal year 2023-24, the company reported a total revenue of approximately Rs 83.21 crore, an increase from Rs 73.49 crore in the previous fiscal year, highlighting steady business growth. However, the net profit after tax slipped to Rs 0.8 crore from Rs 2.66 crore a year earlier, indicating margin pressures.
The company’s total asset base expanded from Rs 430.46 crore to Rs 499.42 crore, underscoring operational scaling. Net worth remains stable around Rs 85 crore.
Chemmanur Credits operates through a network of 282 branches with over 1,400 employees, solidifying its market presence and accessibility.
Strengths and Investment Considerations
- The bonds are secured, meaning they are backed by assets, thus reducing credit risk.
- Featuring a strong coupon range between 9.50% and 12.62%, Chemmanur’s bonds offer above-average fixed income returns.
- The company’s steady revenue growth and expanding asset base reflect a stable business model.
- Backing from the Boby Chemmanur Group lends brand strength and operational support.
- The credit rating of IND BBB-/Stable signals moderate credit risk appropriate for risk-averse investors looking for dependable income.
Potential Risks
- The company’s net profit margin decline signals some profitability challenges.
- As an NBFC, exposure to economic cycles and credit risks must be considered.
- Investors should closely evaluate the credit rating and company disclosures before investing.
Conclusion
Chemmanur Credits and Investments Limited’s 2025 bond issue offers a compelling fixed income opportunity with secured assets and attractive yields up to 12.62%. Investors looking for relatively stable returns with moderate risk exposure would find this bond issue worth consideration, particularly given Chemmanur’s steady expansion and solid market position.
While investors should weigh the credit profile carefully, this issue caters well to fixed income seekers seeking higher-than-average interest rates from a reputed regional NBFC.
