Indel Money Limited, a non-deposit taking NBFC in the gold loan sector, has announced the second tranche of public issue of secured non-convertible debentures (NCDs) of face value of ₹1,000 each. The issue has opened on Friday and closes on June 22 (with an option of early closure in case of early over subscription).
Umesh Mohanan, Executive Director and CEO, Indel Money 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 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. The issue will help us diversify our sources of funds significantly. The long-term funds raised through NCDs will help us cushion any future hike in interest rates.”
The secured NCDs come with the face value of ₹1,000 each. The issue includes a Base Issue Size for an amount of up to ₹50crore with an option to retain over-subscription up to ₹50crore aggregating up to ₹100 crore. The Lead Manager to the issue is Vivro Financial Services Private Limited.
The funds raised through the issue will be used for the purpose of onward lending, financing, and for repayment/ prepayment of principal and interest on borrowings of the company (at least 75 per cent) and general corporate purposes (maximum of up to 25 per cent).
Indel Money closed Q3 FY22 with a gold loan AUM of ₹424.75 crore, up from ₹309.97 crore in FY21 and is targeting ₹850 crore AUM in the current fiscal The company aims to increase the gold loan share of its total AUM to 90 per cent going forward from 83.69 per cent as on February 28.
The company has launched the first NCD tranche of ₹150 crore in September 2021.