With the rise in the new fintech companies in the Indian market, a financial service aspect that has grown substantially is the lending services. The loan lending requirements have grown manifolds with the increasing culture of startups in India. Many banking and financial institutions are specifically into this business of lending credits to prospective customers, one such corporation is InCred Financial Services Limited. InCread is a not-deposit-taking NBFC that is registered with the RBI and verified CRISIL A by CRISIL.
Incorporated in the year 1991, InCred Financial Services provides a variety of loans like education loans, home loans, personal loans, SME loans, and digital loans. Amongst a few very financial corporations that are CRISIL verified, InCred is the one inculcating various new-age technologies to make the credit service quick and hassle-free. Till now, the company has a huge loan portfolio worth ₹ 2,633 Cr to around 3,40,000 customers out of which 50% of the loans disbursed are secured under collateral. With the stepping in the new year, the financial company has decided to go ahead with an issue of Non-Convertible Debentures in January 2022.
InCred Financial NCD Details
The InCred Financial Service NCD issue is scheduled for the date from 24th January to 14th February 2022. The issue size is reported to be ₹125 Cr with a provision for oversubscription of ₹25 Cr and the allotment will be on First Come, First Serve basis. The following table would give you all the details of the issue of the debentures in brief:
| Issue Open Date | 24th January 2022 |
| Issue Close Date | 14th February 2022 |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (NCDs) |
| Issue Size (Base) | ₹125 Cr |
| Issue Size (Shelf) | ₹25 Cr |
| Face Value | ₹ 1000 per Debenture |
| Issue Price | ₹1000 per Debenture |
| Minimum Lot Size | 10 NCDs |
| Tenure | Series I: 12 months and 1 DaySeries II and III: 24 months |
| Listing Exchanges | BSE and NSE |
The InCred Financial Services NCD issue will include three series of debentures depending on the tenure of repayment. The Series I debentures are of the validity of 12 months and 1 day. The Series II and III debentures have a validity of 24 months. In addition to this, the Series I debentures will not have a coupon rate whereas the Series II debentures will have a coupon rate of 9.25% p.a compounded monthly and payable annually; and the Series III debentures will have a coupon rate of 9.13% p.a compounded monthly and payable annually.
Allocation of InCred NCD Issue
As per the DRHP filed with the SEBI, the allocation of the issue of the debentures will be in the following way:
Based on the ratio
| Institutional | 5% |
| Non-Institutional | 20% |
| HNI | 5% |
| Retail | 70% |
Based on No. of debentures
| Institutional | 62,500 |
| Non-Institutional | 2,50,000 |
| HNI | 62,500 |
| Retail | 8,75,000 |
| TOTAL | 12,50,000 Debentures |
Objects of Issue
The DRHP discloses the following objects of the issue for the InCred Financial NCD Issue:
- For onward lending and financing the ordinary course of business.
- Other general corporate purposes.
Financials of the company
As per the financial reports released by the company, the company recorded total revenue of ₹3,326 Cr in FY20 that further increased to ₹3,924 Cr in FY21. The profit after tax was recorded to be around ₹51 Cr in FY20 and on the contrary, the profit was reduced to ₹21.7 Cr in FY21 despite an increase in the total revenue of about 18%.
Registrar and Lead Manager
Link Intime India Private Limited is appointed as the registrar of the InCred Financial Services NCD issue.
Link Intime India Private Limited
C 101, 247 Park B S Marg
Vikhroli West, Mumbai – 400 083
Telephone: +91 22 4918 6200
Website: www.linkintime.co.in
The lead managers of the issue are as follows:
Sundae Capital Advisors Private Limited
Level 9, Platina, Plot No. C – 59, ‘G’ Block
Bandra Kurla Complex, Bandra (East)
Mumbai – 400 051, Maharashtra, India
Telephone: +91 22 6700 0639
Website: www.sundaecapital.com
InCred Capital Wealth Portfolio Managers Private Limited
Unit No. 1203, 12th floor B Wing, The Capital
G Block, Bandra Kurla Complex, Bandra (East)
Mumbai – 400 051, Maharashtra, India
Telephone: +91 22 6844 6100
Website: www.incredsecurities.com
Final Words
The InCred Financial debentures issue is the first debenture issue in the Indian Stock Market in 2022. With a big and prominent name in the lending industry, InCred has tried to expand its operations especially with the introduction of various fintech companies in the Indian market. But eventually, the decision to go for the issue rests in the hands of the investor and we recommend them to rely on their research. Until then, Happy Investing!
