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Ongoing debt public issues: an alternate avenue for investors

29 February 20246 mins read by Angel One
Capitalise on investment opportunities in ongoing NCD issues by Navi Finserv Ltd and Chemmanur Credits and Investments Ltd offering up to 12.25% interest.
Ongoing debt public issues:  an alternate avenue for investors
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In the current financial landscape, several Non-Convertible Debenture (NCD) issues have taken centre stage, providing investors with compelling opportunities. Among the notable ongoing offerings the Navi Finserv Limited and Chemmanur Credits and Investments Limited, also entering the market with their respective NCDs.

As investors navigate the dynamic investment environment, these live NCD issues present avenues for capital deployment, each with its unique features and potential returns.

Navi Finserv Limited issued secured, redeemable, non-convertible debentures (secured NCDs) with a total issue size of Rs 600 crore. The issue was open for subscription from February 26, 2024, to March 7, 2024. Each NCD has a face value of Rs 1000 and a minimum lot size of 10 NCDs. The NCDs are listed on BSE and NSE and have been rated CRISIL A/Stable by CRISIL. They are available in tenors of 18, 27 and 36 months with interest paid monthly or annually.

The allotment of NCDs will be done on a first come first served basis and Catalyst Trusteeship Limited acted as the debenture trustee for the issue.

Coupon Rates

Particulars Series 1 Series 2 Series 3 Series 4 Series 5
Frequency of Interest Payment Monthly Monthly Annual Monthly Annual
Nature Secured Secured Secured Secured Secured
Tenor 18 Months 27 Months 27 Months 36 Months 36 Months
Coupon (% per Annum) 10.00% 10.40% 10.90% 10.65% 11.19%
Effective Yield (% per Annum) 10.47% 10.91% 10.94% 11.19% 11.19%
Amount on Maturity (In Rs.) Rs 1,000.00 Rs 1,000.00 Rs 1,000.00 Rs 1,000.00 Rs 1,000.00

The objective of the Issue

  • The following goals will be funded in part by the firm using the net revenues from the issue: for the goal of continuing the company’s current borrowing and lending, financing, and debt repayment.
  • General objectives of the company.

Navi Finserv Limited is a systemically significant non-bank financial institution (NBFC) that was registered with the RBI in 2012 and does not accept deposits. It is Navi Technologies Limited’s solely owned subsidiary.

Through its mobile application Navi app, the firm provides services such as digital personal loans, house loans, and real estate loans. Formerly known as Chaitanya Rural Intermediation Development Services Private Limited, Navi Finserv Limited was established.

Chemmanur Credits and Investments offered Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) from February 20 to March 4, 2024, with an issue size of Rs 100 crore (base size of Rs 50 crore and oversubscription option of Rs 50 crore). The face value and issue price are both Rs 1000 per NCD, with tenures ranging from 366 days to 6 years. The NCDs are listed on the BSE and have a credit rating of IND BBB-/Stable. Investors can choose monthly or cumulative interest payouts, with allotment based on a first-come, first-served basis. Mitcon Credentia Trusteeship Services Limited acts as the debenture trustee.

Coupon Rates

Particulars Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8
Frequency of Interest Payment Monthly Monthly Monthly Monthly Monthly Cumulative Cumulative Cumulative
Nature Secured Secured Secured Secured Secured Secured Secured Secured
Tenor 366 Days 18 Months 24 Months 36 Months 60 Months 12 Months 24 Months 72 Months
Coupon (% per Annum) 9.50% 10.50% 10.75% 11.00% 11.50% NA NA NA
Effective Yield (% per Annum) 9.92% 11.02% 11.30% 11.57% 12.13% 9.50% 10.75% 12.25%
Amount on Maturity (In Rs.) Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,095 Rs 1,226 Rs 2,000

Objective of the issue

  • For further financing, lending, and principal and interest repayment or prepayment on the company’s borrowings; as well as for general business reasons.

The RBI has registered Chemmanur Credits and Investments Limited as a non-banking, non-deposit-taking financial business (base layer). In the states of Kerala, Tamil Nadu, and Karnataka, the company’s principal line of business is providing loans secured by gold jewellery owned by households (“Gold Loans”). The firm also provides money transfer services, microfinance loans, personal and commercial loans, and the marketing of insurance products to third parties.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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