ICL Fincorp Limited NCD: Key Details, About the Company, & More

ICL Fincorp is a non-deposit-taking, base-layer Non-Banking Financial Company (NBFC) specializing in gold loans, where money is lent against the pledge of household gold ornaments. The company operates primarily in Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Telangana, Odisha, Gujarat, and Maharashtra. 

About ICL Fincorp NCD

ICL Fincorp Limited has opened its NCD issue for subscription from November 11, 2024 to November 25, 2024. These NCDs will be listed on the BSE and offered at a face value of ₹1000 each. Investors can apply for a minimum of 10 NCDs, and additional NCDs can be purchased in multiples of 1.

The NCD offers interest rates between 11.00% and 13.01%, based on the chosen tenure, and investors can opt for payouts on a monthly, yearly, or cumulative basis. The tenure options available for this NCD are 13 months, 24 months, 36 months, 60 months, and 68 months.

The funds raised through the issue will be utilized primarily for onward lending, financing, and for repayment/prepayment of existing borrowings. Some of the proceeds will also go towards general corporate purposes. Kuzhuppilly Govinda Menon Anilkumar and Umadevi Anilkumar are the company's promoters.

About ICL Fincorp

ICL Fincorp is a non-banking finance company (NBFC) based in India. The company specializes in offering gold loans, which make up the majority of its lending portfolio. As of June 30, 2024, ICL’s gold loan portfolio stood at ₹518.41 crore, accounting for nearly 99% of its total loans. These loans are secured by household gold ornaments, a reliable form of collateral. Apart from gold loans, ICL Fincorp also offers several other types of financial products:

• Real Estate Loans – Ranging from ₹5,00,000 to ₹25,00,000, these loans are available to salaried and self-employed individuals, secured against residential, commercial, or industrial properties.
   
• Business Loans – For entrepreneurs, the loan amounts range from ₹50,000 to ₹75,00,000, with repayment tenures spanning from 100 days to 24 months. The loan application requires two business guarantors, along with documents like identity proof, address proof, and bank statements.
   
• Vehicle Loans – Loans for two-wheelers, with amounts from ₹25,000 to ₹2,00,000, covering up to 75% of the vehicle’s value.

The company operates with a strong presence across southern and western India, with 295 branches as of September 30, 2024. ICL Fincorp employs 1,271 people, with a significant proportion i.e. 59% of its employees being women.

For the financial year ending March 31, 2024, ICL Fincorp's revenue grew by 29.35%, while its PAT saw a significant decline of 97.34%, compared to the previous year ending March 31, 2023.

In Conclusion

ICL Fincorp’s NCD issue provides investors with an opportunity to explore a range of flexible tenure options and interest rates. With its focus on gold loans and a strong presence across several Indian states, ICL Fincorp has established a solid foundation in the NBFC sector. It operates in key states such as Kerala, Tamil Nadu, Andhra Pradesh, Maharashtra, etc. ICL Fincorp has established a strong presence with over 295 branches in India.