InCred Financial Services Ltd., a non-banking financial services company, plans to raise Rs 350 crore through a public offer of secured, redeemable non-convertible debentures (NCDs) from January 9-27, the company said.
According to the company, the Series IV NCDs will have an effective yield of up to 10.02 per cent per annum and will be traded in a dematerialised form.
The lead manager to the Issue is JM Financial Limited.
Credit rating agency CRISIL has rated the NCDs A+/stable.
Regarding the issue, Bhupinder Singh, the whole-time director and chief executive officer of InCred, in a press release on Wednesday, said, “This public issuance of NCDs will play a role in further diversifying and strengthening our borrowing mix.”
Singh stressed InCred’s “liabilities strategy” has been a key driver of its growth, and its business model, “rooted in cutting-edge technology and analytics”, reflects its strong asset quality.
InCred, formerly KKR India Financial Services Ltd., said the NCDs would have a face value of Rs 1,000 each, amounting to Rs 175 crore, with an option to retain oversubscription of up to Rs 175 crore (base issue), aggregating to a total of Rs 350 crore.
The company said at least 75 per cent of the funds raised would be used for onward lending, financing, and interest and principal repayment of the company’s existing borrowings.
The balance will be used for general corporate purposes, but not exceeding 25 per cent of the amount raised, in compliance with the Securities and Exchange Board of India (Sebi ) regulations, 2021.
Key Features
· The issue opens on January 9 and closes on January 27, 2023, and it will have an option for early closure as decided by the company’s board, subject to relevant approvals.
· The NCDs will be allotted on a first-cum first-serve basis.
· However, the allotments will be made proportionately from the date of oversubscription and thereafter.
· NCDs will have a coupon rate ranging from 9.45 per cent to 10.00 per cent per annum with quarterly and annual interest options.
· The NCDs have two tenors of 27 months and 39 months.
· The NCDs will be listed on the Bombay Stock Exchange (BSE) Ltd., and the National Stock Exchange of India (NSE) Ltd. BSE will be the designated stock exchange.
· The frequency of interest payments will be quarterly and annually.
· The minimum application amount across all series is Rs 10,000 (10 NCDs)
