Indel Money Ltd, an NBFC in the gold loan sector, has announced the third tranche of public issue of secured NCDs of face value of ₹1,000 each. The issue opens on June 6 and closes on June 19 with an option of early closure in case of over subscription.

Umesh Mohanan, Executive Director and CEO, said, “Our business strategy is designed to capitalise on our competitive strengths, enhance our position in the gold loan industry and to expand our presence. We intend to grow our loan portfolio by sweating our current branch network and by expanding same through opening of 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.”

The issue includes a base issue size for an amount of up to ₹50 crore with an option to retain over subscription up to ₹50 crore aggregating up to ₹100 crore. The lead manager to the issue is Vivro Financial Services Private Ltd.

Use of funds

The funds raised will be used for onward lending financing. The company plans to raise approximately ₹300 crore through public issue of debentures in FY24. The NBFC plans to use the proceeds from the issue to fund its gold loan business, a press release said.

The company witnessed a staggering 210 per cent growth in disbursement in FY23, having disbursed loans worth ₹3,000 crore for FY23. Gold loans take up 92 per cent of its loan portfolio. Indel Money also grew its assets under management (AUM) by 72 per cent to ₹1,154 crore in FY23 from ₹669 crore in FY22.

The company targets AUM of ₹2,100 crore in the current fiscal, guiding for a growth of 81 per cent. The company aims to retain the gold loan share of its total AUM at over 90 per cent, going forward.

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