Indel Money Limited is an NBFC-ML in the gold loan sector lending money against the pledge of household gold jewelery ('Gold Loans') in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Maharashtra and Telangana and the union territory of Puducherry. They also provide loans against property, business loans and personal loans. The Gold Loan portfolio (excluding off-balance sheet assets) for on the half year ended September 30, 2023, and Fiscal 2023, 2022 and 2021 amounted to Rs 67,132.98 lakhs, Rs 50,635.60 lakhs, Rs 42,135.99 lakhs and Rs 30,994.35 lakhs which is 82.13%. , 78.18%, 80.46% and 77.71%of the total loans and advances (excluding off-balance sheet assets) as on such specific dates. As on September 30, 2023, they had a network of 250 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Maharashtra and Telangana and the union territory of Puducherry. Company focus on rapid, on the spot approval and disbursement of loans with minimal procedural formalities which the customers need to complete in order to avail a loan from them. They have developed various Gold Loan schemes to meet the different needs of various customers. With a view to offer differentiated services during the covid-19 pandemic and considering the customers’ dilemma regarding requirement of credit but being unable to visit branches, they introduced the ‘Doorstep Gold Loan’ scheme. This enabled the customers to avail much needed credit during the lockdown and transact with the comfort of their homes. They have also introduced ‘Digital gold loan’ in April 2020 to offer existing customers an opportunity to seek additional credit and helped lot of the customers avail much needed credit when strict lockdown rules were enforced in the first two quarters of Fiscal 2021. For the half year ended September 30, 2023, and Fiscal 2023, 2022 and 2021, the total outstanding AUM (excluding off-balance sheet assets) was Rs 81,740.86 lakhs, Rs 64,768.53 lakhs, Rs 52,367.29 lakhs and Rs 39,884.30 lakhs out of which the Outstanding Gold Loans AUM (Excluding Off-Balance Sheet Assets) Amounted to Rs 67,132.98 Lakhs, Rs 50,635.60 Lakhs, Rs 42,135.99 Lakhs and Rs 30,994.35 Lakhs Which is 82.13%, 78.18%, 80.46% and 77.71% of the total loans and advances (Excluding off-balance sheet assets) as on such specific dates. They provide customers with tailor made gold loan products with varying rates of interest, loan amount and tenure to suit their varied requirements. They offer customers a range of loans against property, business loans and personal loans ('Other Loan') along with Gold Loans . Other Loan portfolio for the half year ended September 30, 2023, and Fiscal 2023, 2022 and 2021 aggregates to Rs 14,607.87 lakhs, Rs 14,132.93 lakhs, Rs 10,231.30 lakhs and Rs 8,889.95 lakhs which contributes 17.85%, 21.82%, 19.5 4% and 22.29% of the total loans and advances (excluding off-balance sheet assets) as on such specific dates. This NCD is given CRISIL BBB+ / Stable rating by CRISIL Ratings Limited and the instruments with this rating are considered to have moderate degree of safety and moderate credit risk. Also company has shown good growth and its expected interest rates may go down in next 6-12 months. So, average rating and lucrative coupon rates make this offer an option for investors looking for long term fixed income. We give NEUTRAL rating to debt issue.
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