InCred may merge with KKR's corporate lending unit: Report
If InCred merges with KKR India Financial Services, it will create an NBFC with a loan book of over Rs 6,000 crore.
July 28, 2020 / 10:47 AM IST
Global private equity firm KKR is in advanced discussions to merge its non-banking finance company (NBFC) with Mumbai-based InCred.
KKR and InCred are in exclusive discussions for the next six-eight weeks, according to a report by The Times of India.
If InCred merges with KKR India Financial Services, it will create an NBFC with a loan book of over Rs 6,000 crore, the report said.
Moneycontrol could not independently verify the report.
KKR and InCred spokespersons declined to comment when contacted by The Times of India.
"The deal will give InCred exposure to a corporate lending portfolio, which its team has had experience in managing besides backing of large investors as well. There is no capital infusion needed right now as both companies have low gearing ratios" a source told the publication.
KKR and its backers, which include Abu Dhabi Investment Authority (ADIA) and Texas Teacher Retirement System, will own a third of the merged entity and be the largest shareholders, the report said.
During the past few quarters, KKR had held talks with other NBFCs, the report added.