InCred Financial Services Ltd announces Public Issue of up to Rs 300 crore of Secured NCDs

Ahmedabad: InCred Financial Services Limited (formerly known as KKR India Financial Services Limited), a non-deposit-taking 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 Rs  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 as may be decided by the Board of Directors or Finance Committee of the Company in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”). The NCDs have been rated CRISIL A+/Stable (pronounced as CRISIL A plus rating with Stable outlook) by CRISIL Ratings Limited.

Bhupinder Singh, Whole Time Director and Chief Executive Officer, of InCred Financial Services Limited said, “We have established ourselves as a diversified lending NBFC with a business model rooted in cutting edge tech and analytics and focussed on risk metrics reflected in the strength of our asset quality.  This is a consequence of a tried and tested approach to credit risk and collections. We continuously leverage technology and data-science to make lending quick, simple and hassle-free. A key component of our growth so far has been the success of our liabilities strategy, and this public issuance of NCDs will play a role in further diversifying and strengthening our borrowing mix”

The minimum application size would be Rs  10,000 (i.e. 10 NCDs) and thereafter in multiples of Rs  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 annual coupon payments 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 utilized for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company) and a maximum of up to 25% of the net proceeds may be utilized for general corporate purposes.

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

For the three months ending June 2023, total revenue from operations stood at Rs  266.94 crore and profit before tax for the period stood at Rs  82.99 crore.

The terms of each series of Secured NCDs, offered under the Issue are set out below:

*The Company shall allocate and allot Series V NCDs (Monthly option) wherein the Applicants have not indicated the choice of the relevant NCD Series.

** From the deemed date of allotment.

JM Financial Limited and InCred Capital Wealth Portfolio Managers Private Limited* are the lead managers to the Issue (“Lead Managers”). CRISIL Ratings Limited is the Credit Rating Agency. Catalyst Trusteeship Limited is the Debenture Trustee to the Issue and Link Intime India Private Limited is the Registrar to the Issue.

* InCred Capital Wealth Portfolio Managers Private Limited is deemed to be an associate of the Issuer as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, InCred Capital Wealth Portfolio Managers Private Limited would be involved only in marketing of the Issue and as per Regulation 25 (3) of SEBI NCS Regulations shall not issue a due diligence certificate.

The allotment under Issue will be on the basis of the date of upload of each application into the electronic book of the Stock Exchange in accordance with the SEBI Master Circular. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on a proportionate basis. For further details, refer section titled “Issue Procedure” on page 399 of the Prospectus.