Indel Money to raise up to Rs 150 cr via bonds

The issue includes a base issue size for Rs 75 crore with an option to retain over subscription up to Rs 75 crore aggregating up to Rs 150 crore.

The gold focused non-banking finance company will issue secured redeemable non-convertible debentures (NCDs), aggregating to Rs 75 crore, with a green-shoe option to retain oversubscription up to Rs 75 crore, thus aggregating to a total of Rs 150 crore.

The secured and unsecured NCDs come with the face value of Rs 1,000 each. The issue opened on 23 September and will close on 18 October 2021 with an option of early closure in case of early over subscription. Minimum lot size is 10 bonds with multiples of 1.

NCDs are offered in 11 different series with various tenors. The NCDs are offered in tenors of 366 days, 18 months, 36 months, 54 months, 61 months and 71 months.

The bonds are offering coupon rates from 9.25% to 12% per annum. Interest is payable monthly, yearly or on maturity depending on the series. The yield ranges from 9.25% to 12.68%.

The bonds are rated 'CRISIL BBB/Stable' by CRISIL Ratings. The NCDs are proposed to be listed on the BSE.

The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment and prepayment of principal and interest on borrowings of the company (at least 75%) and general corporate purposes (maximum of up to 25%).

Indel Money is a non-banking finance company (NBFC). It lends money against the pledge of household gold jewellery (gold loans). The company has a network of 191 branches spread in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh and Telangana and the Union Territory of Puducherry. The company will foray into the states of Orissa, West Bengal and Maharashtra in this financial year with a focus on expanding into the states of Gujarat and Rajasthan in the next financial year.

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