The non-banking financial company, Indel Money, on Tuesday announced the fourth public issue of Secured Non-Convertible Debentures (NCDs) of face value of Rs 1,000 each.
This issue is set to open on Tuesday, January 30, 2024 and will close on Monday, February 12, 2024 along with an option of early closure in case of early over subscription.
“Our business strategy is designed to capitalise on our competitive strengths to enhance our position in the Gold Loan industry and to expand our presence,” Umesh Mohanan, the executive director of Indel Money Ltd said.
“The first half of FY24 saw the company demonstrating a stellar performance with its profitability surging by a record 568.86% buoyed by a strong AUM growth, heightened demand for gold loans, expansion into newer territories and operational efficiencies despite a challenging business environment,” he said discussing about the NBFC’s financial health.
Indel Money deals in the gold loan sector, and has been expanding its business in the country.
It has opened eight branches in the Delhi-NCR area and aims to open furthermore by March 2024.
“We aim to continue to grow our loan portfolio by expanding our branch network by opening new branches. Increased revenue, profitability and visibility are the factors that drive the branch network. With this issue, we aim to expand our sources of funds,” Mohanan said.
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 current issue includes a base issue size for up to Rs 100 crore with an option to retain oversubscription up to Rs 100 crore aggregating up to Rs 200 crore. The lead manager to the Issue is Vivro Financial Services Private Limited, as per the note.
As of September 30, 2023, Indel Money had a total outstanding asset under management (AUM) (excluding off-balance sheet assets) amounting to Rs 81,740 lakh as compared to Rs 64,768 lakh as on March 31, 2023. Gold Loans accounted for about 82 per cent of the loan portfolio with a branch network of 250 branches as on September 30, 2023.
In its future plans, Indel intends to widen the geographic footprint by FY25 to over 425 branches across 12 Indian states, expanding to states in East and North India.
Previously, it has successfully launched three public issues of NCDs and raised more than Rs 260 crore.
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