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 (at least 75%) and general corporate purposes (maximum of up to 25%).
The NCDs are for a tenure of 366 days to 77 months with a coupon yielding up to 11.5 per cent per annum.
Umesh Mohanan, executive director and CEO, Indel Money said, “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 issue includes a base issue size for an amount of up to Rs 50 crore with an option to retain oversubscription up to Rs 50 crore aggregating up to Rs 100 crore. The lead manager to the issue is Vivro Financial Services.
Indel Money closed Q3FY22 with a gold loan AUM (asset under management) of Rs 424.75 crore, up from Rs 309.97 crore in FY21 and is targeting Rs 850 crore AUM in the current fiscal, guiding for a growth of 41%.
Indel Money launched the first NCD tranche of Rs 150 crore in September 2021.
The company is planning to raise approximately Rs 300 crore through the issue of debentures in FY23. The NBFC also has plans to raise private equity (PE) to foray into new geographies in FY23-24. It has plans to expand the geographic footprint to over 405 branches by FY25 across 11 Indian states including the eastern and northern states of India.