26-Oct-2023
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InCred Financial Services Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on October 25, 2023, and closes on November 7, 2023. It will have a base issue size of Rs 150 crore.
About InCred Financial Services Limited
Incorporated in 1995, InCred Financial Services Limited operates within the financial services sector. The company holds registration with SEBI as a Non-Banking Financial Company (NBFC) that does not accept deposits and is considered systemically important.
InCred Financial Services primarily serves the financial needs of lower to middle-class Indian households. They provide solutions in the form of education and personal loans. Additionally, the company extends secured and unsecured business loans to a diverse clientele, including small businesses, K12 Indian schools looking to fund their expansion efforts, supply chain financing, profitable financial institutions, microfinance companies, and escrow-backed lending via their Small and Medium-sized Enterprise (SME) division.
In 2022, the entity, previously known as KKR India Financial Services Limited, underwent a merger and rebranded itself as InCred Financial Services Limited.
The company offers products in three main categories:
- Consumer Loans
- Education Loans
- MSME Loans
Furthermore, InCred Financial Services differentiates its products and services into several subcategories, such as Personal Loans, Student Loans, Secured School Financing, Anchor and Escrow-Backed Business Loans, Structured Lending, and Lending to Financial Institutions.
Financial Performance of InCred Financial Services Limited
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| 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 Limited NCD Details
| 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
| Category | NCD’s Allocated |
| Institutional | 5% |
| Non-Institutional | 10% |
| HNI | 40% |
| Retail | 45% |
NCD’s Offered by Category
| Category | NCD’s Reserved |
| Institutional | 75,000 |
| Non-Institutional | 150,000 |
| HNI | 600,000 |
| Retail | 675,000 |
| Total NCD’s | 1,500,000 |
InCred Financial Services Limited NCD 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 of InCred Financial Services Limited NCD
The NCDs proposed to be issued under this issue have been rated ‘CRISIL A+/Stable’ by CRISIL Ratings Limited.
Company Promoters of InCred Financial Services Limited
The promoters of the company are InCred Holdings Limited (erstwhile known as KKR Capital Markets India Limited) and Bhupinder Singh.
The Objective of the InCred Financial Services Limited NCD
The company intends to use the proceeds generated from the issue as follows:
- For the purpose of extending loans, providing financing, and repaying both the interest and principal amounts of the Company’s existing borrowings 75%.
- For general corporate purposes 25%.
InCred Financial Services Limited NCD Lead Manager(s)
The lead manager of the NCD is JM Financial Limited and InCred Capital Wealth Portfolio Managers Private Limited.
How to Apply for InCred Financial Services Limited NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the InCred Financial Services Limited NCD with Bigul click here.
How to Check the Allotment Status of InCred Financial Services Limited NCD
The registrar for InCred Financial Services Limited NCD is Link Intime India Private Limited. To check your allotment status, please click on this link https://linkintime.co.in/
FAQs
- What is InCred Financial Services Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by InCred Financial Services Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The company plans to utilize the issue proceeds with 75% directed towards extending loans, financing, and repaying existing borrowings, while the remaining 25% will be allocated for general corporate needs.
- What is the issue size and price of the NCD?
The base issue size is Rs 150 crore, with a green shoe option potentially taking the total to Rs 300 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on October 25, 2023, and closes on November 7, 2023.
- How has the NCD been rated?
The NCD has received a CRISIL A+/Stable by CRISIL Ratings Limited.
- Who are the promoters behind the company?
The company is promoted by InCred Holdings Limited and Bhupinder Singh.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) in a dematerialized format.
- Who are the lead managers for this NCD issue?
The NCD is being led by JM Financial Limited and InCred Capital Wealth Portfolio Managers Private Limited.
- How can I apply for the InCred Financial Services Limited NCD?
Once the NCD opens for subscription, you can apply through this link: InCred Financial Services Limited NCD with Bigul
- How do I check my allotment status?
The registrar for this NCD is Link Intime India Private Limited. You can check your allotment status by visiting this link
- How many series of NCDs are available, and what are their respective tenures?
There are 5 series of NCDs available with varying tenures of 18, 24 and 36 months.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Catalyst Trusteeship Limited.
- What are the payout options for these NCDs?
Investors have the flexibility to choose between annual, quarterly, or monthly interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, InCred will allocate the debentures to applicants on a proportional basis.