Indel Money Fundraising Plan through NCDs
Indel Money Limited, a prominent non-bank lender specializing in gold loans, announced on Thursday its intention to raise Rs 100 crore through secured non-convertible debentures (NCDs).
According to a press release issued by the company, the NCD offering will consist of debentures with a face value of Rs 1,000 each. The subscription period for the NCDs will commence on June 6 and conclude on June 19.
“The NCD issue encompasses a base issue size of up to Rs 50 crore, with an option to retain oversubscription of up to Rs 50 crore, resulting in a total of Rs 100 crore,” stated the company.
Indel Money disclosed that the debentures will have a tenure ranging from 400 days to 72 months, with an attractive coupon rate of up to 12.25 percent per annum. The NCDs have been assigned a rating of BBB+/Stable by Crisil Ratings Ltd.
Umesh Mohanan, Executive Director and CEO of Indel Money remarked, “Branch network expansion is driven by enhanced revenue, profitability, and visibility. Through this NCD issue, we aim to diversify our funding sources.”
Also Read: Bank of Baroda: Board Approves Rs 5,000 Cr Capital Raise for Expansion
In May 2022, Indel Money successfully raised Rs 100 crore through NCDs. The company also intends to generate approximately Rs 300 crore through a public issue of debentures in FY24.
During FY23, Indel Money experienced an impressive 210 percent growth in loans, with total disbursements amounting to Rs 3,000 crore. Gold loans constituted 92 percent of the company’s loan portfolio.
The assets under management (AUM) of Indel Money witnessed a significant surge of 72 percent, growing from Rs 669 crore in FY22 to Rs 1,154 crore in FY23. The company’s goal for the current fiscal year is to achieve an AUM of Rs 2,100 crore, reflecting an ambitious growth rate of 81 percent.
Indel Money presently operates in eight states and has ambitious plans to expand its reach to over 500 branches across 15 states in India by FY25.
About Indel Money:
Indel Money Limited is a non-banking financial company and stands as one of the rapidly expanding companies in India. The company provides a range of financial services, such as gold loans, Small and Medium Enterprise loans, and customized money transfer services, catering to the specific requirements of its customers.
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