Incorporated in 1995, InCred Financial Services Limited is engaged in the financial services business. The company is registered with SEBI as a non-deposit-taking systemically important NBFC (Non-Banking Financial Company).
The company offers its services to lower middle-class to middle-class Indian households and resolves their need for personal finance in the form of education and personal loans. Alongside, InCred Financial Services also offers secured and unsecured business loans. Their customers include small businesses, secured loans to K12 Indian schools for their expansion plans, supply chain financing, lending to profitable financial Institutions and microfinance companies, and escrow-backed lending through its SME vertical.
In 2022, the earlier company known as KKR India Financial Services Limited was merged and emerged as InCred Financial Services Limited.
The products of InCred Financial Services Limited can be categorized as
- Consumer Loans
- Education Loans
- MSME Loans
The company further divides the products and services as – Personal Loans, Student Loans, Secured School Financing, Anchor and escrow Backed Business Loans, Structured Lending, and Lending to FIs.
Incred Financial Services October 2023 NCD Detail
| Issue Open | October 25, 2023 – November 7, 2023 |
| Security Name | Incred Financial Services Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 150.00 Crores |
| Issue Size (Shelf) | Rs 300.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL A+/Stable by CRISIL Ratings Limited. |
| Tenor | 18, 24 and 36 months |
| Series | Series I to V |
| Payment Frequency | Monthly, Quarterly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Catalyst Trusteeship Limited |
NCD Allocation Ratio
Category  |
NCD’s Allocated |
|---|---|
| Institutional | 5% |
| Non-Institutional | 10% |
| HNI | 40% |
| Retail | 45% |
NCD’s Offered by Category
| Category |
NCD’s Reserved |
|---|---|
| Institutional | 75,000 |
| Non-Institutional | 150,000 |
| HNI | 600,000 |
| Retail | 675,000 |
| Total NCD’s | 1,500,000 |
Incred Financial Services Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 |
|---|---|---|---|---|---|
| Frequency of Interest Payment | Monthly | Quarterly | Monthly | Annual | Monthly |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 18 Months | 24 Months | 24 Months | 36 Months | 36 Months |
| Coupon (% per Annum) | 9.48% | 9.55% | 9.66% | 10.30% | 9.84% |
| Effective Yield (% per Annum) | 9.88% | 9.88% | 10.08% | 10.28% | 10.29% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
NCD Rating
The NCDs proposed to be issued have been rated ‘CRISIL A+/Stable’ by CRISIL Ratings Limited.
Company Promoters
InCred Holdings Limited (erstwhile known as KKR Capital Markets India Limited), and Bhupinder Singh are the promoters of the company.
Company Financials
Incred Financial Services Limited Financial Information (Restated Consolidated)
Incred Financial Services Limited’s revenue increased by 67.37% and profit after tax (PAT) rose by 234.79% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 6,608.39 | 4,034.65 | 2,804.53 |
| Revenue | 877.45 | 524.27 | 392.48 |
| Profit After Tax | 120.92 | 36.12 | 10.23 |
| Net Worth | |||
| Reserves and Surplus | |||
| Total Borrowing | |||
| Amount in ₹ Crore | |||
Objects of the Issue
The company proposes to utilize the funds which are being raised through the Issue:
- For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company – 75% of the amount raised and allotted in the Issue.
- General Corporate Purposes – 25% of the amount raised and allotted in the Issue.