Namra finance bonds explained: Price, ISIN, yield (YTM), rating and key risks

Quick Answer

Namra Finance Limited bonds identified by ISIN INE229U07186 are non-convertible debentures issued by Namra Finance Limited, a non-banking financial company focused primarily on commercial vehicle and small-business financing.

The NCD carries a 10.90% fixed annual coupon, paid quarterly, and has an indicative yield to maturity of 11.5% as listed on BondScanner. It is rated A- by Acuite, based on the rating dated 15 April 2026.

The instrument is structured as a senior, listed and secured NCD and matures on 24 April 2028. The minimum investment displayed on BondScanner is approximately ₹99,390 for a total face value of ₹1,00,000.

The principal is redeemed in two instalments: ₹50,000 on 24 January 2028 and the remaining ₹50,000 on 24 April 2028.

The 11.5% indicative YTM is higher than the 10.90% coupon because the bond is available at a price slightly below its total face value and because of the timing of its coupon and principal cash flows.

Introduction

Namra Finance Limited bonds may attract investors seeking quarterly income and comparatively higher yields within the corporate bond market.

The Namra Finance NCD bearing ISIN INE229U07186 carries a 10.90% fixed coupon and an indicative YTM of 11.5%. It is rated A- by Acuite and is structured as a senior, listed and secured non-convertible debenture.

The bond pays interest quarterly and follows a partial principal redemption structure. Half of the principal is scheduled to be repaid in January 2028, while the remaining principal is payable on the final maturity date of 24 April 2028.

This article provides a factual and educational explanation of the Namra Finance NCD, including its price, coupon, YTM, rating, payout schedule, security structure and key risks.

This is not a review endorsing or recommending the bond. It is an educational guide intended to help investors understand the factors they would need to evaluate.

All content is educational and does not constitute investment advice.

What Is Namra Finance Limited?

Namra Finance Limited is a non-banking financial company primarily engaged in providing loans for commercial vehicles and small businesses.

The company focuses on customers in semi-urban and rural areas. It provides financing solutions intended to help borrowers purchase income-generating assets, operate small businesses and improve their earning capacity.

Its customer base includes borrowers who may have limited access to conventional banking and formal credit channels.

The company’s business model depends substantially on:

● Timely repayments from its borrowers

● Collection efficiency

● Quality of the underlying loan portfolio

● Access to bank and market funding

● Ability to manage credit losses

● Maintenance of adequate liquidity and capital

For bond investors, these factors are important because deterioration in borrower repayments or the company’s funding position could affect its ability to service interest and principal obligations.

Bond parameters are based on the BondScanner platform data provided for this article. YTM and investment price are indicative and may change with market price movements. Investors should verify the current price, YTM, rating and availability before any transaction.

What Is ISIN INE229U07186?

INE229U07186 is the International Securities Identification Number assigned to this specific NCD issued by Namra Finance Limited.

An ISIN is a unique 12-character code used to identify a financial security. It allows investors, exchanges, depositories and platforms to distinguish one bond from another.

This is particularly important when an issuer has multiple NCD series with different:

● Coupon rates

● Maturity dates

● Credit ratings

● Payout frequencies

● Security structures

● Redemption schedules

● Market prices

● YTMs

Investors should always confirm that the ISIN displayed on the BondScanner any Platform’s listing, order confirmation, issue documents and demat statement is INE229U07186.

A general search for “Namra Finance Limited bonds” may surface other securities issued by the same company. The ISIN confirms that the investor is evaluating the correct NCD.

Namra Finance Bond Price and YTM Explained

The face value of each Namra Finance NCD is ₹10,000.

The minimum investment displayed on BondScanner is approximately ₹99,390 for 10 units carrying a total face value of ₹1,00,000.

This indicates that the investment price is slightly below the total face value, subject to the live transaction price and any applicable settlement calculations.

The bond offers an indicative YTM of 11.5% per annum.

Why is YTM higher than the coupon?

The bond’s coupon rate is 10.90%, while its indicative YTM is 11.5%.

When a bond is purchased below its face value, the investor may receive:

● Coupon income calculated on the full face value

● Principal repayment based on the face value

● A potential price gain arising from the difference between the purchase price and redemption value

These factors can result in a YTM that is higher than the coupon rate.

The timing of the principal repayments also affects the YTM. In this NCD, ₹50,000 of principal is scheduled to be repaid three months before the final maturity date.

Coupon versus YTM

The coupon rate is calculated on the outstanding face value. YTM considers:

● Purchase price

● Coupon payments

● Remaining tenure

● Principal redemption schedule

● Redemption amount

● Timing of all expected cash flows

YTM assumes that all scheduled payments are made on time and that the investor holds the bond through its complete redemption schedule.

It should not be interpreted as a guaranteed return.

Important: Bond prices and YTM may change based on market demand, remaining tenure, interest rates, liquidity and changes in perceived credit risk. Investors should always check the current price and YTM on OBPP Platforms like BondScanner before making any investment decision.

The interest amounts are not identical for every quarter. This may arise from differences in the number of days in each interest period and the applicable day-count convention.

Interest is calculated on the outstanding principal.

After ₹50,000 of principal is redeemed on 24 January 2028, the outstanding principal reduces to ₹50,000. As a result, the final interest payment on 24 April 2028 is lower.

The schedule represents gross contractual cash flows and is subject to timely payment by the issuer.

A 10% TDS is applicable to the interest component, as stated on the BondScanner listing.

How partial principal redemption works

The bond does not repay the entire principal only on the final maturity date.

The principal is redeemed in two instalments:

This structure returns half of the principal before the final maturity date.

However, it also introduces reinvestment risk because the investor may not be able to reinvest the ₹50,000 received in January 2028 at the same yield.

Namra Finance Bond Credit Rating: What A- MeansNamra Finance Bond Credit Rating: What A- Means

The Namra Finance NCD bearing ISIN INE229U07186 is rated A- by Acuite.

The stated rating date is 15 April 2026.

The following table provides a broad educational view of long-term credit-rating categories.

An A- rating is within the investment-grade category but is below AA and AAA-rated instruments.

This means the bond may be more vulnerable to adverse business, financial or economic conditions than higher-rated debt securities.

The higher YTM may partly compensate investors for accepting this additional credit risk.

A credit rating does not:

● Guarantee interest payments

● Guarantee principal repayment

● Eliminate default risk

● Guarantee secondary-market liquidity

● Protect against a future downgrade

● Replace independent due diligence

Investors should verify whether Acuite has issued any subsequent rating action, outlook change or downgrade after 15 April 2026.

Is the Namra Finance NCD Secured?

Yes. Namra Finance NCD INE229U07186 is described as a senior secured instrument.

A senior secured NCD generally means:

● The bond is backed by a charge over identified assets or receivables

● It ranks above subordinated debt in the repayment hierarchy

● The debenture trustee may act on behalf of bondholders if the issuer defaults

● Recovery rights are governed by the offer and security documents

Namra Finance is primarily engaged in commercial vehicle and small-business financing. The precise nature of the assets securing this NCD should be verified from the offer document and security-related disclosures.

Does secured mean risk-free?

No.

Secured status provides an additional recovery mechanism, but it does not guarantee full or timely repayment.

Recovery may depend on:

● Quality of the charged assets

● Security-cover ratio

● Realisable value of the assets

● Existing claims from other secured lenders

● Legal and enforcement timelines

● Costs involved in recovery

● Borrower repayment and collection performance

Investors should review the offer document for the exact security structure, ranking of the charge and required security cover.

Role of the Debenture Trustee

Vardhaman Trusteeship Private Limited is the debenture trustee for this NCD.

The debenture trustee represents the collective interests of NCD holders and may be responsible for:

● Monitoring the creation of security

● Reviewing compliance with issue terms

● Monitoring security cover

● Communicating material defaults

● Representing debenture holders

● Initiating enforcement action when required

The appointment of a debenture trustee is an investor-protection mechanism. However, it does not guarantee repayment or eliminate the possibility of recovery delays.

Namra Finance Business Model

Namra Finance Limited mainly provides loans for commercial vehicles and small businesses.

Commercial vehicle financing

Commercial vehicle financing is linked to the borrower’s ability to generate income from the vehicle.

Repayment performance may be affected by:

● Freight demand

● Fuel prices

● Vehicle utilisation

● Maintenance costs

● Local economic activity

● Agricultural and rural income cycles

The financed vehicle can provide collateral support, but its resale and recovery value may decline over time.

Small-business financing

Loans to small businesses can support entrepreneurship and income generation. However, small businesses may be more vulnerable to:

● Economic slowdowns

● Seasonal cash flows

● Limited working capital

● Customer-payment delays

● Local disruptions

● Informal financial records

Semi-urban and rural customer base

Namra Finance focuses on customers in semi-urban and rural areas.

This can support financial inclusion, but the company’s repayment performance may be influenced by regional economic conditions, agricultural cycles and local collection challenges.

What investors should independently verify

Before investing, investors should review the latest available information on:

● Gross and net non-performing assets

● Collection efficiency

● Provision coverage

● Capital adequacy

● Liquidity position

● Leverage

● Profitability

● Borrowing profile

● Loan-book concentration

● Recent credit-rating rationale

Namra Finance Bond Review

Namra Finance NCD INE229U07186 offers:

● 11.5% indicative YTM

● 10.90% fixed coupon

● Quarterly interest payments

● A- credit rating

● Senior secured structure

● Exchange listing

● Partial principal repayment

● Final maturity on 24 April 2028

The minimum investment is approximately ₹99,390 for a total face value of ₹1,00,000.

The bond’s indicative YTM is higher than the coupon because the purchase price is slightly below face value and the principal is partially repaid before final maturity.

However, the A- rating indicates a higher level of credit risk than AA or AAA-rated bonds.

Potential features investors may evaluate

● Defined coupon rate

● Quarterly cash flows

● Predetermined maturity

● Partial repayment before final maturity

● Senior secured status

● Potentially higher yield than higher-rated debt securities

Key limitations investors should evaluate

● A- rated issuer credit risk

● Risk of delayed interest or principal payments

● Limited secondary-market liquidity

● Rating-downgrade risk

● Dependence on borrower collections

● Security-enforcement risk

● Reinvestment risk after partial redemption

● Tax and TDS impact on interest

This section is not a recommendation or endorsement. Investors should assess whether the bond is suitable for their own risk tolerance, investment horizon and portfolio exposure.

Key Risks of Investing in Namra Finance Bonds

Credit risk

Namra Finance Limited may delay or fail to make scheduled interest or principal payments if its financial position deteriorates.

The issuer’s repayment ability depends on borrower collections, liquidity, capital availability and continued access to funding.

Borrower credit risk

The company lends to commercial vehicle operators and small businesses.

These borrowers may experience more volatile cash flows than larger, formally organised borrowers. Economic stress may increase delayed payments and defaults.

Asset-quality risk

A rise in non-performing assets, restructuring, write-offs or credit costs may weaken the company’s earnings and liquidity.

Investors should monitor changes in gross and net non-performing assets and collection efficiency.

Commercial vehicle concentration risk

Commercial vehicle repayments can be affected by freight rates, fuel prices, vehicle utilisation and broader economic activity.

An economic slowdown could affect the income of vehicle operators and their ability to repay loans.

Semi-urban and rural exposure risk

Regional economic weakness, agricultural stress or local collection disruptions may affect borrower repayment performance.

Rating-movement risk

The NCD is rated A- by Acuite.

A downgrade or Negative outlook could:

● Indicate rising credit risk

● Reduce investor demand

● Lower the secondary-market price

● Increase refinancing costs for the issuer

● Make an early exit more difficult

Liquidity risk

Private-placement NCDs may have limited secondary-market trading.

Even though the bond is listed, an investor may not always find a buyer at a fair price before maturity.

Interest-rate risk

If market interest rates rise after investment, the price of the fixed-rate NCD may decline.

This is particularly relevant for investors who may need to sell before maturity.

Refinancing risk

Non-banking financial companies rely on banks and debt markets for funding.

Difficulty in raising fresh borrowing or refinancing existing liabilities could create liquidity pressure.

Security-enforcement risk

The NCD is secured, but recovery may still involve legal delays, costs and uncertainty.

The charged assets may not realise their full stated value during enforcement.

Reinvestment risk

Quarterly coupon payments and the ₹50,000 principal repayment in January 2028 must be reinvested separately.

The investor may not be able to reinvest these amounts at the same 11.5% yield.

Concentration risk

A large allocation to one issuer increases exposure to company-specific events.

Diversification across issuers, rating categories, sectors and maturities can reduce concentration risk but cannot eliminate investment risk.

Taxation and TDS on Namra Finance NCDs

Interest income

Interest received from the NCD is generally taxable according to the investor’s applicable income-tax provisions.

The BondScanner listing states that 10% TDS applies to the interest component.

TDS is not deducted from principal repayment.

For the ₹1,00,000 face-value schedule:

The amount remaining after TDS is not necessarily the investor’s final post-tax return.

The investor’s actual tax liability may depend on:

● Applicable income-tax slab

● Tax residency

● Total annual income

● Availability of tax credits

● Prevailing tax provisions

● Whether the bond is sold before maturity

Investors should consult a qualified tax professional for advice relevant to their circumstances.

Where to View Namra Finance Bond Details

OBPP Platforms like BondScanner

Namra Finance NCD INE229U07186 is listed on OBPP platforms like BondScanner with its current price, indicative YTM, coupon rate, rating, payout schedule and maturity information.

Investors should use the live BondScanner listing to verify the latest transaction details before making any investment decision.

Acuite

The latest credit-rating rationale and any subsequent rating actions should be verified through Acuite’s official ratings disclosures.

Stock exchange disclosures

As a listed NCD, relevant issuer disclosures and corporate actions may be available through the applicable stock exchange disclosure platforms.

Debenture trustee disclosures

Security-cover information, covenant compliance and default-related communications may be available through Vardhaman Trusteeship Private Limited.

FAQs

What is the ISIN of the Namra Finance bond covered in this article?

The ISIN is INE229U07186. It identifies the 10.90% secured, senior, rated and listed NCD issued by Namra Finance Limited and maturing on 24 April 2028.

What is the coupon rate of Namra Finance Limited bonds?

The NCD carries a fixed coupon rate of 10.90% per annum, paid quarterly.

What is the YTM of Namra Finance NCD INE229U07186?

The indicative YTM is 11.5% per annum as listed on BondScanner. The YTM may change with the bond’s market price.

Why is the YTM higher than the coupon rate?

The YTM is higher because the minimum investment price is slightly below the total face value and because YTM considers the timing of all coupon and principal payments.

What is the credit rating of Namra Finance bonds?

The NCD is rated A- by Acuite, based on the rating dated 15 April 2026.

Investors should verify whether there have been any subsequent rating actions or outlook changes.

Is an A- rated NCD safe?

An A- rating is within the investment-grade category, but it does not mean the NCD is risk-free.

The bond remains exposed to credit risk, default risk, liquidity risk, rating-downgrade risk and interest-rate risk.

Is the Namra Finance NCD secured?

Yes. INE229U07186 is described as a senior secured NCD.

However, secured status does not guarantee full or timely recovery. Recovery depends on the quality and realisable value of the charged assets and the enforcement process.

What is the minimum investment?

The minimum investment displayed on BondScanner is approximately ₹99,390, corresponding to 10 NCDs with a total face value of ₹1,00,000.

How often is interest paid?

Interest is paid quarterly.

When does the Namra Finance bond mature?

The final maturity date is 24 April 2028.

How is the principal repaid?

The ₹1,00,000 face value is repaid in two instalments:

● ₹50,000 on 24 January 2028

● ₹50,000 on 24 April 2028

What is the total scheduled interest?

The total scheduled gross interest for the ₹1,00,000 face-value holding is ₹17,753.60.

What is the total scheduled cash flow?

The total scheduled gross cash flow is ₹1,17,753.60, comprising ₹17,753.60 in interest and ₹1,00,000 in principal.

Does TDS apply?

Yes. The BondScanner listing states that 10% TDS applies to the interest component.

The investor’s final tax liability may differ depending on applicable income-tax provisions.

Who is the debenture trustee?

Vardhaman Trusteeship Private Limited is the debenture trustee.

Can the bond be sold before maturity?

The bond is listed and may be sold in the secondary market. However, an early exit depends on buyer availability and the prevailing market price.

Listing does not guarantee liquidity.

What are the main risks of Namra Finance bonds?

The key risks include issuer credit risk, borrower-default risk, deterioration in asset quality, limited secondary-market liquidity, rating downgrade, interest-rate movements, refinancing pressure and delays in enforcing security.

This is educational information and not a recommendation to invest.

Published By

This article is published by BondScanner, a SEBI-registered Online Bond Platform Provider.

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Disclaimer

This blog is intended solely for educational and informational purposes. The instruments, issuer categories, yield ranges and examples mentioned herein are illustrative and should not be construed as investment advice or recommendations.

BondScanner is a SEBI-registered OBPP and does not provide personalised investment advice. Nothing in this article is a solicitation to buy or sell any security. Investments in debt securities are subject to risks, including delay and/or default in payment. Investors must read all offer-related documents carefully before investing.