- Secured NCDs of face value of Rs. 1,000 each
- The Issue includes a Base Issue Size for an amount of up to 50 crore with an option to retain over subscription up toRs. 50 crore aggregating up to Rs.100 crore
- Issue opens on May 27, 2022 and closes on June 22, 2022
- NCDs proposed to be issued under this Issue are rated as rating of Acuite BBB+/Stable by Acuite Ratings & Research Limited
- Doubling of investment in 77 months – Option VIII
- Coupon yielding up to 50% per annum
- Completely Secured NCDs with tenure ranging from 366 days to 77months
- Minimum application size 10,000across all Options of NCDs
- NCDs will be traded in dematerialised form
- The NCDs are proposed to be listed on BSE Limited
New Delhi, May 27, 2021: Indel Money Limited, a non-deposit taking and a non – systemically important non-banking finance company (“NBFC”) in the gold loan sector, announced the second tranche of public issue of Secured NCDs of face value of Rs. 1,000 each. The Issue opens on May 27, 2022 and closes on June 22, 2022 (with an option of early closure in case of early over subscription).
Mr. Umesh Mohanan, Executive Director and CEO, Indel Money said,”Our business strategy is designed to capitalize on our competitive strengths, enhance our position in the Gold Loan industry and to expand our presence. We intend to continue to grow our loan portfolio by expanding our branch network by opening new branches. Increased revenue, profitability and visibility are the factors that drive the branch network. The issue will help us diversify our sources of funds significantly. The long-term funds raised through NCDs will help us cushion any future hike in interest rates.”
The Secured NCDs come with the face value of Rs. 1,000 each. The issue includes a Base Issue Size for an amount of up to Rs.50 crore with an option to retain over subscription up toRs. 50crore aggregating up to Rs.100 crore. The Lead Manager to the Issue is Vivro Financial Services Private Limited.
The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/ prepayment of principal and interest on borrowings of the Company (at least 75%) and general corporate purposes* (maximum of up to 25%).
*The Net Proceeds will be first utilized towards the Objects mentioned above. The balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the gross proceeds, in compliance with the SEBI NCS Regulations.
Indel Money closed Q3 FY22 with a gold loan AUM of Rs.424.75 crore, up from Rs. 309.97 crore in FY21 and is targeting Rs.850 crore AUM in the current fiscal, guiding for a growth of 41%. The company aims to increase the gold loan share of its total AUM to 90% going forward from 83.69% as on February 28, 2022.
Indel Money launched the first NCD tranche of Rs.150 crore in September 2021.
The company is planning to raise approximately Rs.300 crore through issue of debentures in FY23. The NBFC plans to use the proceeds from the issue to fund its gold loan business. The NBFC also has plans to raise private equity (PE) to foray into new geographies in FY23-24. It has plans to expand the geographic footprint to over 405 branches by FY25 across 11 Indian states including the eastern and northern states in India.
Corporate Comm India (CCI Newswire)
