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IPO

BondsIndia

A+

Opening Date

09 Jan 2023

Closing Date

27 Jan 2023

Yield

Upto 10.02%

Tenure

Upto 39 Months

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Time to close

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Company Details
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Home   /   IPO   /    Incred Financial Services Ltd

IPO

Incred Financial Services Ltd

Ongoing IPO

Incred Financial Services Ltd

Opening Date
09 Jan 2023

BondsIndia

A+

Closing Date
27 Jan 2023

bondsindia

Time to close

Yield
Upto 10.02%

Tenure
Upto 39 Months

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KNOW MORE
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IPO Details

IPO Details

Issue Size (Including Green Shoe Option) 350 crores
Face Value ₹1000
Coupon Upto 10.02%
Minimum Number of Bonds 10
Lot Size (Multiplier) 1
Allotment Date (Tentative) 02 Feb 2023
Listing Date (Tentative) 06 Feb 2023
Exchange Bid Time (24 Hours) 10:00 to 17:00

Documents attached

Information Memorandum

 

BondsIndia
Product Note

 

BondsIndia

*Allotment on first come first serve basis

 

ISSUE STRUCTURE

Series
I
II
III
IV*
Nature Of NCDs
Secured Redeemable, Non-Convertible Debentures
Who Can Apply
Everyone
Frequency of Interest payment
Quarterly
Yearly
Quarterly
Yearly
Minimum Application
10000 (10 NCDs) across all Series
Face Value/ Issue Price of NCDs (₹/ NCD)
1000
In multiples of thereafter ()
10000 (1 NCD)
Tenure (Months)
27
Months
27
Months
39
Months
39
Months
Coupon (% per annum) for NCD Holders in Category I & II
9.45%
9.80%
9.65%
9.10%
Coupon (% per annum) for NCD Holders in Category III & IV
9.45%
9.80%
9.65%
9.10%
Effective Yield (per annum) for NCD Holders in Category I & II
9.78%
9.82%
10.00%
10.02%
Effective Yield (per annum) for NCD Holders in Category III & IV
9.78%
9.82%
10.00%
10.02%
Mode of Interest Payment
Through various modes available

How to invest in the Incred Financial Services Ltd IPO?

Application process on BondsIndia platform is simple and seamless.

•Click on the details of the company on the home page

•Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details

•Then, confirm the quantity and price and select payment method.

•That’s all folks , bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

Why choose BondsIndia?

BondsIndia is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a Technology based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose BondsIndia for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for Incred Financial Services Ltd IPO on BondsIndia’s website.

Place your bid in three simple steps:

1

Key in Basic Details

2

Choose the IPO Series

3

Place the bid

How to invest in the
Incred Financial Services Ltd ?

Application process on BondsIndia platform is simple and seamless.

  • Click on the details of the company on the home page
  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank, and Demat details
  • Then, confirm the quantity and price and select a payment method.
  • That’s all folks, bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

AUM

6099 Crs

GNPA

2.4%

NPA

1.4%

  • Incred Financial Services Ltd
    The erstwhile Incred Financial Services Ltd (now renamed as Incred Prime Finance Ltd) was a non-deposit taking, non-banking financial company headquartered in Mumbai. Incorporated in January 1991 as Visu Leasing and Finance Pvt Ltd (VLFL), this company was acquired by Incred in 2016, after which, its name was changed to reflect the Incred brand. Having started its operations in February 2017, Incred is a new-age financial services platform that leverages technology and data science, throughout its lending chain, thereby reducing the turnaround time.
  • On September 30, 2022, the company had a diversified AUM of Rs 5052 crore which includes the effect of corporate reorganization with erstwhile KKR India Financial Services. KKR India was a non-deposit taking, systemically important,NBFC, engaged in providing structured funding, promoter financing, and mezzanine financing, commenced operations in October 2009. Prior to the corporate reorganization, KKR Capital Markets India Private Limited held 100% stake in KKR India. The current Incred Financial Services Ltd refers to the merged entity.
  • Strong capitalisation position supported by high pedigree of investor base Incred is well-capitalised, with networth of Rs 2,300 crore with a low gearing of 1.6 times as on September 30, 2022. This marks a significant improvement from Rs 595 crore of networth as on March 31, 2019. The company commenced its operations with a networth of around Rs 500 crore, mainly contributed by the founderu2019s company u2013 Bee Finance Ltd(Mauritius). In fiscal 2019, Incred raised optionally convertible debentures (OCDs) in fiscal 2017,and converted them to equity in fiscal 2019 (April 2018) to the tune of Rs 116 crore from Investcorp (IDFC Private Equity) and Paragon Partners.
  • Experienced promoters and senior management team Incred was promoted in 2016, by Mr Bhupinder Singh, Whole Time Director and Chief Executive Officer. Having been associated with Deutsche Bank with his last stint as head of the Corporate Finance division and the co-head of the Fixed Income, Equities and Investment Banking divisions for the Asia Pacific region, Mr Singh has a professional experience of over two decades.
  • Diversified loan portfolio InCred had a diversified loan portfolio of Rs 5,052 crore as on September 30, 2022 which marks a half-yearly growth of 33% (non-annualized). This growth was driven by addition of erstwhile KKR Indiau2019s wholesale loan portfolio to Incredu2019s overall AUM as part of the corporate reorganization. As on September 30, 2022, the AUM mix consists of personal loans (38%),secured school financing (10%), student loans (16%), lending to NBFCs (10%) and anchor& escrowbacked business lines(19%).Apart from these, erstwhile KKR Indiau2019s wholesale portfolio also constitutes 6% of the AUM however, this share has declined from 13% as of June 30, 2022.This book is spread across 5 group accounts and is expected to run down in the near to medium term.

    In the initial phase of erstwhile Incred Financial Services Ltd, growth in the loan portfolio was driven by higher focus on wholesale segments such as supply chain financing and lending to financial institutions and escrow-backed lending which, which cumulatively formed 76% of the total loan book as on June 30, 2017. These segments were followed by unsecured business loans, which formed another 18% of the loan portfolio with slightly higher degree of granularity. However, eventual growth corresponded with diversification across asset segments with more focus on retail loans.
  • Moderate earnings profile Owing to the nascent scale of operations, operating expenses of Incred, though correcting, have remained high attributed to support costs, especially employee and technology-linked expenses. Furthermore, on-boarding of senior management to lead respective asset segments has also contributed to the high employee expenses. In fiscal 2020, the company focused on optimizing cost and overall operating expense increase was controlled at 19%. However, the business growth was less than what was budgeted, as AUM grew at 17% over the year on account of cautious origination in some segments and overall challenging macroeconomic environment for most part of the year. Disbursements in the last quarter of fiscal 2020 were also impacted because of the lockdown.
  • Asset quality remains a monitorable Given the relatively short track record of operations and low, thought increasing, seasoning in the loan portfolio, asset quality of the book remains untested. As on March 31, 2020, GNPA stood at 2.8%, as compared to 1.8% as on March 31, 2018. Elevation in non-performing assets stemmed from challenges faced within personal loans and non-anchor business loan segments wherein the company also took write-offs of Rs 35 crore. During fiscal 2021, GNPAs rose to 4.5% by December 31, 2020 amidst tepid economic environment. However, following the recovery in Q4 2021, GNPAs reduced to3.4% as of March 31, 2021 which u2013 after the pandemicu2019s second wave, magain elevated marginally to 3.9% [including the impact of 0.65% points due to the Reserve Bank of India (RBI) circular of November 2021 on NPA recognition] as on December 31, 2021. However, following the revival in collections thereafter, GNPA as on September 30, 2022 improved to 2.4%
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* Investments in debt securities are subject to risks. Read all the offer related documents carefully.
N/A stands for Not Applicable

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