Kochi-based gold loan NBFC Indel Money plans to raise up to Rs 200 crore through non-convertible debentures (NCDs) to shore up its capital and diversify lend-able resources at a coupon rate of 12.25%.
Significantly the company’s 4th issue comes at a time when NBFCs focused on retail lending are finding it difficult to raise funds from banks as the banking regulator has raised the risk weights on their loans to such NBFCs. “The NCD issue will help us diversify our borrowing and investor mix.” said Umesh Mohanan, Whole Time Executive Director, Indel Money Limited.
NCDs proposed to be issued under this Issue are rated as BBB+/Stable ratings by Crisil. It indicates a moderate degree of safety regarding the timely servicing of financial obligations.
The secured NCDs with tenure ranging from 366 days to 72 months carry a coupon yielding up to 12.25% per annum. The issue includes a base issue size for an amount of up to Rs100 crore with an option to retain over-subscription up to Rs 100 crore aggregating up to Rs 200 crore. The issue opens on January 30, 2024, and closes on February 12, 2024.
Indel’s total outstanding assets under management – AUM (excluding off-balance sheet assets) amounted to Rs 817 crore as on September 30, 2023, as compared to Rs 647 crore as on March 31, 2023.
Gold loans take up 82% of the loan portfolio with a branch network of 250 branches as on September 30, 2023. The company intends to widen our geographic footprint by Fiscal 2025 to over 425 branches across 12 Indian states, expanding to eastern and northern states in India, Mr Mohanan said.
