InCred Financial Services: Issue of secured NCDs

InCred Financial Services Limited (formerly known as KKR India Financial Services Limited), a non-deposit taking systemically important NBFC registered with RBI, has filed its prospectus dated October 11, 2023 for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹ 1,000 each. The Issue opens on Wednesday, October 25, 2023, and closes on Tuesday, November 7, 2023 with an option of early closure or extension.

The minimum application size would be ₹ 10,000 (i.e. 10 NCDs) and thereafter in multiples of ₹ 1,000 (i.e. 1 NCD) thereof. This issue has maturity / tenure options of 18 months, 24 months and 36 months for NCDs with monthly, quarterly and an annual coupon payment being offered across series I, II, III, IV and V. Effective yield for NCD holders in various categories ranges from 9.88% to 10.29% per annum.

Out of the net proceeds of the Issue, at least 75% of the net proceeds shall be utilised for the purpose of onward lending, financing and for repayment of interest and principal of existing borrowings of the Company) and a maximum up to 25% of the net proceeds may be utilised for general corporate purposes.

For the fiscal year 2023, the company’s consolidated total revenue from operations stood at ₹ 864.58 crore and consolidated net profit before tax for the fiscal year 2023 was ₹ 203.17 crore.

For the three months ending June 2023, total revenue from operations stood at ₹ 266.94 crore and profit before tax for the period stood at ₹ 83.00 crore.

InCred Financial Services Limited is a non-deposit taking systemically important NBFC registered with the Reserve Bank of India. The Company caters to lower middle class to middle class Indian households for their personal finance needs like education loans, personal loans. Correspondingly, the Company also offers secured and unsecured business loans to small businesses, secured loan to K12 Indian schools for their expansion plans, supply chain financing, lending to profitable financial Institutions and micro finance companies and escrow backed lending through its SME vertical.

As on June 30, 2023 the asset under management for the Company was ₹ 6,483.50 crore and the Company was catering to 4,18,704 customers. As on March 31, 2023 company’s AUM was ₹ 6,062.44 crore. The AUM as of March 31, 2022 and 2021 was ₹ 3,843.75 crore and ₹ 2,644.65 crore, respectively.