Incred Financial Services NCD opens for subscription from 25 October 2023. The company aims for a base issue size of ₹150 Crores.
About the company
Incorporated in 1995, InCred Financial Services 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 standalone basis, as of 6 October 2023 amounted to INR 4,480.98 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 accepts inter-corporate deposits. It has a diversified lender base comprising of public sector banks, private banks, financial institutions, development financial institutions, small finance banks, and others.
As of 30 June 2023, and 31 March 2023, its AUM was INR 64,83.50 crore, and INR 6,062.44 crore, and catered to 4,18,704, and 3,76,879 customers, respectively. As of 30 June 2023, 1,281 permanent and 125 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 Details
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| Issue Open | October 25, 2023 – November 7, 2023 |
| Security Name | Incred Financial Services Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹150 Crores |
| Issue Size (Shelf) | ₹300 Crores |
| Issue Price | ₹1000 per NCD |
| Face Value | ₹1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL A+/Stable by CRISIL Ratings Limited. |
| Tenor | 18, 24 and 36 months |
| Series | Series I to V |
| Payment Frequency | Monthly, Quarterly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
Incred Financial Services NCD Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 18 months | Monthly | 9.48% | 9.88% | INR 1,000 |
| Series 2 | 24 months | Quarterly | 9.55% | 9.88% | INR 1,000 |
| Series 3 | 24 months | Monthly | 9.66% | 10.08% | INR 1,000 |
| Series 4 | 36 months | Annual | 10.30% | 10.28% | INR 1,000 |
| Series 5 | 36 months | Monthly | 9.84% | 10.29% | INR 1,000 |
Incred Financial Services NCD Rating
The NCDs proposed to be issued have been rated ‘CRISIL A+/Stable’ by CRISIL Ratings Limited.
Incred Financial Services Company Financials
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 6,608.39 | 4,034.65 | 2,804.53 |
| Revenue | 877.45 | 524.27 | 392.48 |
| Profit After Tax | 120.92 | 36.12 | 10.23 |
Incred Financial Services NCD Allocation Ratio
Incred Financial Services Company Promoters
- Incred Holdings Limited
- Bhupinder Singh
Incred Financial Services NCD Lead Manager
JM FINANCIAL LIMITED
7th Floor, Cnergy, Appasaheb Marathe Marg,
Prabhadevi Mumbai – 400 025
Phone: +91 22 6630 3030
Email: incred.ncdissue2023@jmfl.com
Website: jmfl.com
Incred Financial Services 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 Services 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 (NCDs) 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
