InCred Financial Services to raise up to Rs 300 cr via public issue of NCDs

This issue has maturity/tenure options of 18 months, 24 months and 36 months for NCDs with monthly, quarterly and annual coupon payment

InCred Financial Services plans to raise up to Rs 300 crore through public issue of non-convertible debentures, the company said in a release on October 13.

The public issue will open on October 25 and close on November 7, the release said. The company have an option of early closure or extension as may be decided by the board of directors or the finance committee of the company.

"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," said Bhupinder Singh, Whole Time Director and Chief Executive Officer, of InCred Financial Services.

The company will utilise 75 percent of the net proceeds for onward lending, financing and repayment of interest and principal of existing borrowings of the Company) and a maximum of up to 25 percent for general corporate purposes, the release said.

The NCDs are rated 'A+' with a 'Stable' outlook by CRISIL. The company is offering a coupon rate of up to 10.30 percent for Series IV NCDs with annual interest payment frequency and a tenor of 36 months.

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 payment, the release added.