Incred Financial Services NCD opens for subscription from 09 January 2023. the company aims for a base issue size of ₹175 Crores.
Incred Financial Services Limited
The company is a non-deposit-taking systemically important NBFC registered with the RBI. It caters to lower-middle-class to middle-class Indian households for their personal finance needs like education loans, and personal loans. Correspondingly, it also offers secured and unsecured business loans to small businesses, secured loans to K12 Indian schools for their expansion plans, supply chain financing, lending to profitable financial Institutions and microfinance companies, and escrow-backed lending through its SME vertical.
The company was engaged in providing structured funding, promoter financing, and mezzanine financing. To consolidate the non-banking financing business related to retail and SME lending and ancillary financing activities undertaken by pre-demerger InCred, InCred Demerged Undertaking was merged with Pre-demerger KKR to achieve greater economies of scale, operational rationalization, and organizational efficiency, wider market reach and customer base, pooling of knowledge and expertise, and to reduce redundant cost.
The company’s total borrowings on a consolidated basis, as of 30 September 2022 amounted to INR 2,289.29 crore. It relies on long-term, medium-term borrowings and short-term borrowings from various sources. The company takes term loans, issue non-convertible debentures, market-linked debentures, and commercial papers, and accept inter-corporate deposits. It has a diversified lender base comprising public sector banks, private banks, financial institutions, development financial institutions, small finance banks, and others. As on 30 September 2022, its AUM was INR 5,052.17 crore and catered to 3,30,059 customers through 872 permanent and 53 contract employees.
Objectives of the Issue
- For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company – 75% of the amount raised and allotted in the Issue.
- General Corporate Purposes – 25% of the amount raised and allotted in the Issue.
Incred Financial Services NCD Tranche I Jan 2023 Details
| Issue Open | Jan 9, 2023 – Jan 27, 2023 |
| Security Name | Incred Financial Services Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 175.00 Crores |
| Issue Size (Shelf) | Rs 350.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | CRISIL A+/Stable by CRISIL Ratings Limited |
| Tenor | 27 and 39 months |
| Series | Series I to IV |
| Payment Frequency | Annual and Quarterly |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustees | CATALYST TRUSTEESHIP LIMITED |
Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 27 months | Quarterly | 9.45% | 9.78% | INR 1,000 |
| Series 2 | 27 months | Annual | 9.80% | 9.82% | INR 1,000 |
| Series 3 | 39 months | Quarterly | 9.65% | 10.00% | INR 1,000 |
| Series 4 | 39 months | Annual | 10.00% | 10.02% | INR 1,000 |
NCD Rating
The company has received a rating of CRISIL A+/Stable by CRISIL Ratings Limited for the NCDs proposed to be issued pursuant to this Issue.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| 31-Mar-20 | 2232.1 | 332.67 | 5.16 | 1040.5 |
| 31-Mar-21 | 2804.53 | 392.48 | 2.17 | 1054.01 |
| 31-Mar-22 | 4034.65 | 524.27 | 30.83 | 1115.19 |
| 30-Sep-22 | 6194.28 | 398.12 | 46.76 | 2391.19 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 350,000 |
| Non-Institutional | 350,000 |
| HNI | 525,000 |
| Retail | 525,000 |
| Total NCD’s | 1,750,000 |
Company Promoters
- Incred Holdings Limited
- Bhupinder Singh
NCD Lead Manager
- JM Financial Limited
InCred Financial NCD Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: incred.ncd2@linkintime.co.in
Website: www.linkintime.co.in
InCred Financial Contact Details
INCRED FINANCIAL SERVICES LIMITED
Unit No. 1203, 12th Floor,
B Wing, The Capital, Plot No. C-70,
G Block, Bandra Kurla Complex, Bandra (East),
Mumbai, Maharashtra – 400 051
Phone: +91 22 6844 6100
Email: incred.compliance@incred.com
Website: www.incred.com
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Incred Financial Services NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
