Chemmanur Credits and Investments Limited IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is IRRPL.

About

Chemmanur Credits and Investments Limited is a non-deposit-taking, non-banking financial company (NBFC-Base Layer) registered with the Reserve Bank of India (RBI). The company is primarily engaged in providing gold loans against the pledge of household gold jewellery. In addition to gold loans, it offers microfinance loans, secured business loans, personal loans, money transfer services, and distributes third-party insurance products. Its microfinance business follows the Joint Liability Group (JLG) model, under which loans are provided to individual women borrowers with group-backed repayment guarantees. The company has been operating in the lending business for over 14 years and is based in Kerala. As of June 30, 2026, it operated 302 branches across six states: Kerala, Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, and Telangana. Its operations are managed through its registered office in Thrissur, Kerala, and the company employed 1,268 people as of the same date. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: For onward lending, financing and repayment/prepayment of principal and interest of borrowings of the company — at least 75% of the net proceeds General corporate purposes — maximum up to 25% of the net proceeds.;

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The company has been engaged in the gold loan business for more than 14 years and, as of June 30, 2026, operated a network of 302 branches across Kerala, Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, and Telangana. It primarily focuses on lending against pledged household gold jewellery while also offering microfinance, business, and personal loans.

The company claims to offer multiple gold loan schemes with varying loan tenures, interest rates, and loan amounts based on the quantity of gold pledged. As of the financial year ended March 31, 2026, it held 0.82 tonnes of gold jewellery as collateral for its gold loan portfolio.

The company claims to have diversified funding sources through bank borrowings, public and private non-convertible debentures (NCDs), and subordinated debt. This enables it to raise funds through multiple channels instead of relying on a single source of financing.

The company has received investment-grade credit ratings from multiple agencies. CRISIL Ratings has assigned CRISIL BBB-/Stable to its long-term bank loans and non-convertible debentures, while India Ratings has assigned IND BBB/Stable to its bank loans, non-convertible debentures, and the proposed NCD issue.

The company claims to have an established risk management and internal audit framework. It has constituted committees such as the Audit Committee, Asset Liability Management Committee, and Risk Management Committee to oversee lending and risk-related functions.

The company’s loan portfolio is primarily secured by pledged household gold jewellery, while its business loans are backed by hypothecation of business assets. As of March 31, 2026, it reported gross and net non-performing assets (NPAs) of 0.93% and 0.65% of assets under management, respectively.

Chemmanur Credits and Investments Limited

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