InCred Financial Services Limited announces Public Issue of up to ₹ 350 crore of Secured, Redeemable Non-Convertible Debentures (NCDs)

 

• Effective yield of up to 10.02% per annum for Series IV

• Credit Rating: CRISIL A+/Stable by CRISIL Ratings Limited

• Issue opens on January 9, 2023 and closes on January 27, 2023, with an option for early closure as decided by the Board of Directors or Finance Committee of the Company and subject to relevant approvals

• NCDs will be traded in dematerialised form

• Allotment on first cum first serve basis. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on proportionate basis.

Mumbai, January 05, 2023 (HPN): InCred Financial Services Limited, (erstwhile known as KKR India Financial Services Limited) (the “Company”), a non-deposit taking systemically important Non-Banking Financial Company (NBFC), today announced the public issue of Secured, Redeemable Non-Convertible Debentures (NCDs) of the face value ₹ 1,000 each, amounting to ₹ 175 crore with an option to retain oversubscription up to ₹175 crore (“Base Issue”) aggregating to a total of ₹ 350 crore (“Issue”). The Issue opens on Monday, January 9, 2023 and is scheduled to close on Friday, January 27, 2023. The NCDs proposed under the Issue have been rated CRISIL A+/Stable by CRISIL Ratings Limited.

The Lead Manager to the Issue is JM Financial Limited. 

Mr. Bhupinder Singh, Whole Time Director and Chief Executive Officer, of InCred Financial Services Limited said, “We have firmly established ourselves as a diversified lending NBFC with a business model rooted in cutting edge tech and analytics and a laser sharp focus 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 and believe that technology will help to drive continuous reductions in our processing time, thereby improving our efficiency and allowing us to provide better service to our customers. 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 NCDs offer Coupon Rate ranging from 9.45% to 10.00% per annum with quarterly and annual interest option. The NCDs have two tenors of 27 months and 39 months. Please refer to table on Issue Structure below on coupon rates and tenors for each series of NCDs. The NCDs are proposed to be listed on on BSE Limited and National Stock Exchange of India Limited where BSE is the designated stock exchange.

At least 75% of the funds raised through this Issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“SEBI NCS Regulations”). 

Issue structure 

Series	I	II	III	IV*
Frequency of Interest Payment	Quarterly	Annual	Quarterly	Annual
Minimum Application	₹ 10,000 (10 NCDs) across all series
In Multiples of thereafter (₹)	₹ 1,000 (1 NCD)
Face Value / Issue Price of NCDs (₹/ NCD)	₹ 1,000
Type of Instrument	Secured NCDs
Tenor	27 Months	27 Months	39 Months	39 Months
Coupon (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV	9.45%	9.80%	9.65%	10.00%
Effective Yield (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV	9.78%	9.82%	10.00%	10.02%
Mode of Interest Payment	Through Various Modes available
Amount (₹ / NCD) on Maturity for NCD Holders in Category I, Category II, Category III & Category IV	₹ 1,000	₹ 1,000	₹ 1,000	₹ 1,000
Maturity / Redemption Date (from the Deemed Date of Allotment)	27 Months	27 Months	39 Months	39 Months
Put and Call Option	Not Applicable

*Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

About InCred

InCred Financial Services Limited is a non-deposit taking systemically important NBFC registered with the Reserve Bank of India. The Company caters to lower middle class to middle class Indian households for their personal finance needs like education loans, personal loans. Correspondingly, the Company also offers secured and unsecured business loans to small businesses, secured loan to K12 Indian schools for their expansion plans, supply chain financing, lending to profitable financial Institutions and micro finance companies and escrow backed lending through its SME vertical. As on September 30, 2022 the asset under management for the Company was ₹ 5,05,217.0 lakh and the Company was catering to 3,30,059 customers. 

Disclaimer: INCRED FINANCIAL SERVICES LIMITED (erstwhile known as KKR India Financial Services Limited) (“Company”), subject to market conditions and other considerations is proposing a public issue of Secured, Redeemable, Non-Convertible Debentures of face value of ₹ 1,000 each and has filed the Prospectus dated December 30, 2022 (the “Prospectus”) with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Prospectus is available on the Company’s website at www.incred.com; on the website of the stock exchanges at www.nseindia.com and www.bseindia.com; on the website of SEBI at www.sebi.gov.in; and the website of the lead manager at www.jmfl.com. Investors proposing to participate in the Issue, should invest only on the basis of the information contained in the Prospectus. Investors should note that investment in this public Issue of NCDs involves a high degree of risk and for details relating to the same, please refer to the Prospectus and your attention is drawn to the section on “Risk Factors” beginning on page 19 of the Prospectus.