 "debt, money, loans, invest, income, mutual fund, MF, investment, bad loans, debenture,")
Indel Money Limited, a Non-Banking Financial Company specialising in gold loans, launched its fourth public issue of secured Non-Convertible Debentures (NCDs) on Wednesday with a face value of Rs 1,000 each. The company aims to raise up to Rs 200 crore through the issue.
The company had launched three public issues of NCDs since 2021 and raised more than Rs 260 crore.
The subscription window for this issue is scheduled to open on January 30 and will remain open until February 12, with an option for early closure in the event of oversubscription before the stipulated closing date. The lead manager to the issue is Vivro Financial Services Private Limited.
The NCDs are divided into four maturity options ranging from 366 days to 72 months. The base issue size is set at Rs 100 crore, and there is a green shoe option that allows for an additional Rs 100 crore, bringing the total fundraising to Rs 200 crore.
The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/prepayment of principal and interest on borrowings of the company. The issuance has coupons yielding up to 12.25 per cent per annum.
As of September 30, 2023, Indel Money reported total Assets Under Management (AUM), excluding off-balance sheet assets, of Rs 81,740.86 lakh. Approximately 82 per cent of the loan portfolio is attributed to Gold Loans, reflecting the company's strong focus in this segment. The firm currently operates through a network of 250 branches.
Umesh Mohanan, executive director and chief executive officer at Indel Money Limited, said that 35 per cent of the company’s total borrowing is from banks and it continues to grow as the portfolio of the company has been growing consistently. He said that the company has a diverse source of funding which limited the losses after the Reserve Bank of India’s norm on unsecured lending.
The NCDs have been given a credit rating of 'BBB+' with a 'Stable' outlook by CRISIL Ratings Limited.
