Indel Money to offer NCD yielding 12.25% for 6 years; subscription open till January 30

Indel Money Limited, an NBFCs in the gold loan sector, announced the fourth public issue of secured NCDs of the face value of Rs 1,000 each. The issue opens on Tuesday, January 30, and closes on February 12 (with an option of early closure in case of early oversubscription).

The company has simultaneously opened eight branches in Delhi-NCR, in line with its expansion plans to open 16 branches by March 2024

Umesh Mohanan, Executive Whole Time Director, Indel Money Limited, said, “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. The first half of FY24 saw the company demonstrating a stellar performance, with its profitability surging by a record 568.86%, buoyed by strong AUM growth, heightened demand for gold loans, expansion into newer territories and operational efficiencies despite a challenging business environment. We aim to continue to grow our loan portfolio by expanding our branch network and 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.”

“We are witnessing a steady growth of demand for gold loans in Delhi. We will be expanding our presence in the region to meet this increased demand with our broader presence and specially designed gold loan schemes,” added Mohanan.

Summary:

• Secured NCDs of the face value of Rs 1,000 each

• The issue includes a base issue size for an amount of up to Rs 100 crore with an option to retain over-subscription up to Rs 100 crore aggregating up to Rs 200 crore

• Issue opens on Tuesday, January 30, 2024 and closes on Monday, February 12, 2024

• Doubling of investment in 72 months – Option VIII

• Coupon yielding up to 12.25% per annum

• Secured NCDs with tenure ranging from 366 days to 72 months

• Minimum application size 10 NCDs (Rs 10,000) across all Options of NCDs

The issue includes a base issue size of up to Rs 100 crore with an option to retain over-subscription up to Rs 100 crore, aggregating up to Rs 200 crore. The lead manager of the issue is Vivro Financial Services Private Limited.

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The funds raised through this issue will be used for the purpose of onward lending, financing and repayment/prepayment of principal and interest on borrowings of the company.

Indel Money Limited had a total outstanding AUM (excluding off-balance sheet assets) amounting to Rs 81,740.86 lakh as of September 30, 2023, as compared to Rs 64,768.53 lakh as of March 31, 2023. Gold loans accounted for ~82% of the loan portfolio, with a branch network of 250 branches as of September 30, 2023. Indel Money Limited intends to widen our geographic footprint by Fiscal 2025 to over 425 branches across 12 Indian states, expanding to states in East and North India.

Indel Money Limited had successfully launched three public issues of NCDs and raised more than Rs 260 crore.