Chemmanur Credits and Investments Limited IPO

Rating

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.

Categories

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 primarily provides gold loans against pledged household gold jewellery across Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, and Maharashtra. It also offers microfinance loans under the Joint Liability Group model, business loans such as Gramin Shakthi Loans for small-scale entrepreneurs, personal loans, domestic money transfer services, and distribution of third-party insurance products. As of December 31, 2025, the company operated through 302 branches across six states, with its headquarters located in Thrissur, Kerala. It employed 1,270 individuals and is part of the Boby Chemmanur Group, which also has retail gold jewellery showrooms in India, the USA, and the Middle East. The company has been active in the lending business for over 14 years. Use of Proceeds: The proceeds from the current issue of NCDs are proposed to be used for the following purposes: Onward lending, financing, and refinancing the existing indebtedness of the company (repayment/prepayment of the interest and the principal of borrowings)—at least 75 percent of the net proceeds (as per the prospectus). General corporate purposes—a maximum of up to 25 percent of the net proceeds.;

Pros and Cons

Pros

Cons

Chemmanur Credits and Investments Limited operates a network of 302 branches across six states in India, with a strategic focus on semi-urban and rural areas that are less served by organised lenders.

The company primarily offers gold loans secured against household gold jewellery and business loans backed by hypothecation of assets. As of December 31, 2025, it reported gross and net non-performing asset (NPA) levels of 1.46 percent and 0.82 percent, respectively.

Chemmanur Credits and Investments Limited accesses funding through a mix of term loans, cash credit facilities, subordinated debt, and public/private placements of non-convertible debentures (NCDs). The company holds ‘CRISIL BBB-/Stable’ and ‘IND BBB-/Stable’ ratings for its instruments from CRISIL Ratings and India Ratings, respectively.

Chemmanur Credits and Investments Limited claims to have internal audits conducted by dedicated gold inspectors and auditors, following a schedule set by its risk management team. Committees such as the Audit Committee and Risk Management Committee are said to oversee various aspects of operational and credit risks.

The company has reported a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 83.13 crore in FY23 to Rs 105.73 crore in FY24 and Rs 131.81 crore in FY25. PAT increased from Rs 0.80 crore in FY23 to Rs 1.72 crore in FY24 and Rs 2.48 crore in FY25.

Chemmanur Credits and Investments Limited

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