Established in 1995, InCred Financial Services Limited NCD IPO operates within the realm of financial services. The organization holds official registration with SEBI, designating it as a systemically important NBFC (Non-Banking Financial Company) that does not accept deposits.
InCred Financial Services NCD IPO extends its offerings primarily to the socioeconomic segment spanning from lower middle-class to middle-class Indian households. Their core focus centers around addressing the personal finance requirements of individuals, particularly in the context of education and personal loans. Furthermore, the company provides both secured and unsecured business loans. Their client base encompasses small businesses, Indian K12 schools seeking secured loans to facilitate expansion endeavors, supply chain financing, loans to profitable financial institutions and microfinance companies, and escrow-backed lending through their SME division.
An important milestone occurred in 2022 when the organization previously known as KKR India Financial Services Limited underwent a merger, emerging as InCred Financial Services Limited NCD IPO.
The offerings of InCred Financial Services Limited are broadly classified into the following categories:
- Consumer Loans
- Education Loans
- MSME Loans
Furthermore, the company breaks down its products and services into distinct categories, encompassing Personal Loans, Student Loans, Secured School Financing, Anchor and Escrow-Backed Business Loans, Structured Lending, and Lending to Financial Institutions.
Incred Financial Services NCD IPO October 2023 Detail
| 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) | Rs 150.00 Crores |
| Issue Size (Shelf) | Rs 300.00 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 |
| 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 |
NCD Allocation Ratio
Incred Financial Services Limited NCD IPO Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 |
|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Quarterly | Monthly | Annual | Monthly |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 18 Months | 24 Months | 24 Months | 36 Months | 36 Months |
| Coupon (% per Annum) | 9.48% | 9.55% | 9.66% | 10.30% | 9.84% |
| Effective Yield (% per Annum) | 9.88% | 9.88% | 10.08% | 10.28% | 10.29% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
NCD Rating
The NCDs proposed to be issued have been rated ‘CRISIL A+/Stable’ by CRISIL Ratings Limited.
Company Promoters
InCred Holdings Limited (erstwhile known as KKR Capital Markets India Limited), and Bhupinder Singh are the promoters of the company.
Company Financials
Incred Financial Services Limited NCD IPO Financial Information (Restated Consolidated)
Incred Financial Services Limited’s revenue increased by 67.37% and profit after tax (PAT) rose by 234.79% between the financial year ending with March 31, 2023 and March 31, 2022.
| 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 |
Objects of the Issue
The company proposes to utilize the funds which are being raised through 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.
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