Indel Money Public Issue Oversubscribed by 156.51%, Offers a Yield of up to 13.44%

Indel Money Limited’s latest Non-Convertible Debenture (NCD) offer witnessed robust investor interest, culminating in an oversubscription of 156.51%. Launched as the company’s fifth public issue, this secured and redeemable NCD issue had a face value of Rs 1,000 per unit and was initially aimed at raising Rs 75 crore.

The NCD issue, which opened on October 21 and closed on November 4, received bids worth Rs 117.38 crore, underscoring the high demand for secure, yield-driven investment products in today’s market. Here’s a closer look at the factors driving this interest.

Strong Subscription Shows Market Demand for Yield-Driven Products

Despite volatile market conditions, Indel Money’s NCD offer drew significant attention from retail and institutional investors alike. The high subscription rate of 156.51% indicates a strong appetite for fixed-income instruments with attractive returns. The NCD offers a yield on redemption of up to 13.44% per annum, making it appealing to income-seeking investors. The issue’s success also reflects a broader market sentiment favouring secure, interest-generating investments.

Details of the NCD Issue and Ratings

The offer, closing with an oversubscription of Rs 117.38 crore, included an option to retain oversubscriptions up to Rs 75 crore, raising the total potential to Rs 150 crore. Each NCD, rated BBB+ with a ‘Stable’ outlook by Crisil Ratings, is anticipated to be listed on the Bombay Stock Exchange (BSE) on or after November 11, offering investors a trading avenue for liquidity.

Remarks from Indel Money’s Leadership

Umesh Mohanan, Executive Director and CEO of Indel Money expressed gratitude for the market’s trust in the company. “We are thrilled to announce that our NCD issue was oversubscribed by 156.51%. This level of interest is a testament to the confidence investors place in our business model, growth strategies, and commitment to strong corporate governance. It provides us with renewed confidence to move forward with our strategic plans and maintain the values that define us,” he shared in a press release.

Key Takeaways for Investors

1. Attractive Yield: With a maximum yield of 13.44% per annum, these NCDs provide an appealing fixed-income opportunity.
2. Liquidity via BSE Listing: Expected to list by November 11, the NCDs offer investors liquidity if they choose to trade on the open market.
3. Credible Rating: Crisil Ratings’ BBB+ Stable rating assures a moderate degree of creditworthiness.
4. Promising Market Response: Oversubscription by 156.51% demonstrates high investor trust in Indel Money’s credibility and potential.

Market Impact and Future Outlook

The oversubscription and investor response indicate strong market sentiment towards Indel Money’s growth initiatives. With a secure corporate governance framework and an expanding footprint, Indel Money is positioned to leverage this capital for sustainable growth. This NCD issue, managed by Vivro Financial Services Private Limited, serves as an encouraging milestone as the company progresses with its expansion plans.

Conclusion

As the NCDs list on the BSE, investors will have an additional avenue for liquidity, making this a noteworthy development in India’s fixed-income market landscape.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.