Indel Money to raise Rs 100 cr via NCDs

The debentures will be issued for a tenure ranging from 400 days to 72 months with coupon yielding up to 12.25 per cent per annum, the company said (Representative Image)

Indel Money Limited, a non-bank lender focussed on gold loan, on Thursday said it will raise Rs 100 crore through secured non-convertible debentures (NCDs).

The NCD issue of face value of Rs 1,000 each will open on June 6 and close on June 19, the lender said in a release.

"The issue includes a base issue size for an amount of up to Rs 50 crore with an option to retain oversubscription up to Rs 50 crore aggregating up to Rs 100 crore," it said.

The debentures will be issued for a tenure ranging from 400 days to 72 months with coupon yielding up to 12.25 per cent per annum, the company said, adding that the issue is rated as BBB+/Stable by Crisil Ratings Ltd.

"Increased revenue, profitability and visibility are the factors that drive the branch network. With this issue, we aim to expand our sources of funds," said Umesh Mohanan, Executive Director and CEO, Indel Money.

Indel Money earlier raised Rs 100 crore through NCDs in May 2022.

It also plans to raise around Rs 300 crore through public issue of debentures in FY24.

In FY23, the lender witnessed a 210 per cent loan growth with total disbursement of Rs 3,000 crore. Gold loans constituted 92 per cent of its loan portfolio.

Its assets under management (AUM) grew by 72 per cent to Rs 1,154 crore in FY23 from Rs 669 crore in FY22. The company is targeting Rs 2,100 crore AUM in the current fiscal, guiding for a growth of 81 per cent.

Currently Indel Money operates across eight states and has plans to expand to over 500-plus branches by FY25 across 15 Indian states.