Indel Money Ltd launches Rs 200-cr Public Issue of non-convertible debentures
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
Jijith Raj, Senior Executive Vice President & Business Head, Indel Money and Umesh Mohanan, Executive Whole Time Director, Indel Money Limited
Hyderabad, January 30: Indel Money Limited, an Indian non-banking financial company (NBFC) in the gold loan sector, has announced its fourth public issue of secured, redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each. The issue opens on Tuesday (January 30) and closes on Monday (February 12) with an option of early closure in case of early over subscription.
Umesh Mohanan, Executive Whole Time Director, Indel Money Ltd 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 per cent buoyed by a strong AUM growth.”
The company has plans to expand into newer territories and enhance operational efficiencies despite a challenging business environment. 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,” he said.
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. The Lead Manager to the Issue is Vivro Financial Services Private Limited. 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 the borrowings.
Indel Money had a total outstanding AUM (excluding off-balance sheet assets) amounting to Rs 817.41 crore as on September 30, 2023 as compared to Rs 647.68 crore as on March 31, 2023. Gold loans take up 82 per cent of the loan portfolio with a branch network of 250 branches as on September 30, 2023. It intends to widen the geographic footprint to over 425 branches across 12 States by FY25.
The company had earlier launched three public issues of NCDs and raised more than Rs 260 crore.
