IGI Logo

* Secured NCDs of face value of Rs. 1,000 each

* 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

* Issue opens on June 06, 2023 and closes on June 19, 2023

* NCDs proposed to be issued under this Issue are rated as rating of BBB+/Stable by Crisil Ratings Limited

* Doubling of investment in 72months – Option VII

* Coupon yielding up to 12.25% per annum

*Completely Secured NCDs with tenure ranging from 400 days to 72 months

* Minimum application size Rs. 10,000 across all Options of NCDs

* NCDs will be traded in dematerialised form

*The NCDs shall be listed on BSE Limited

Indel Money Limited, a non-deposit taking and a systemically important non-banking finance company (“NBFC”) in the gold loan sector, announced the third tranche of public issue of Secured NCDs of face value of Rs. 1,000 each. The Issue opens on June 06, 2023 and closes on June 19, 2023 (with an option of early closure in case of early over subscription).  

Mr. Umesh Mohanan, Executive Director and CEO, Indel Money said," Our business strategy is designed to capitalize 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 Secured NCDs come with the face value of Rs. 1,000 each. 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 Private Limited.

The funds raised through this issue will be used for the purpose of onward lending & financing.

Indel Money witnessed a staggering 210 percent growth in disbursement in FY23, having disbursed loans worth Rs.3000 crore for FY23. Gold loans take up 92 percent of its loan portfolio. Indel Money also grew its assets under management (AUM) by 72 percent to Rs.1,154 crore in the FY23 from Rs.669 on FY22. And now Indel Money is targeting  Rs.2100 crore AUM in the current fiscal, guiding for a growth of 81%. The company aims to retain the gold loan share of its total AUM at 90%+ going forward too.

Indel Money had launched the second NCD tranche of Rs.100 crore in May 2022.

The company is planning to raise approximately Rs. 300 crores through public issue of debentures in FY24. The NBFC plans to use the proceeds from the issue to fund its gold loan business. The NBFC also has plans to raise private equity (PE) to foray into new geographies in FY24-25. Currently Indel money operates across 8 states and it has plans to expand the geographic footprint to over 500+ branches by FY25 across 15 Indian states.

Notes to the Editor: Indel Money Limited

We are a non-deposit taking and a systemically important non-banking finance company (“NBFC”) in the gold loan sector lending money against the pledge of household gold jewellery (“Gold Loans”) in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Maharashtra and Telangana and the union territory of Puducherry. We also provide loans against property, business loans and personal loans. Our Gold Loan portfolio for the nine-month ended December 31, 2022, and Fiscal March 31, 2022, March 31, 2021 and March 31, 2020 amounted to ? 546.80 crore, ? 42,1.35 crore, ? 309.94 crore and ? 295.88 crore which is 80.62%, 80.46%, 77.71%, and 87.99% of our total loans and advances as on such specific dates. We, as on March 31, 2023, had a network of 245 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Maharashtra and Telangana and the union territory of Puducherry.

We are registered with RBI as a non-deposit taking, NBFC (registration no. B-13.01564 dated February 13, 2002) under Section 45 IA of the Reserve Bank of India Act, 1934. Further, our Company has received certificate of registration dated September 27, 2021 bearing registration number B-13.01564 issued by RBI under Section 45IA of the Reserve Bank of India Act, 1934 pursuant to the change in name from ‘Indel Money Private Limited’ to ‘Indel Money Limited’ consequent upon its conversion as a public limited company and receipt of revised certificate of incorporation from RoC, dated August 26, 2021.

Our Company belongs to the Indel Corporation, which was founded by Late Mr. Palliyil Janardhanan Nair. The Indel Corporation entered into the regulated financial services business at a small village in Palakkad, Kerala under a State Government Money lenders license. Over the years the Group has diversified its presence from being a financial services company to automobile dealership, hospitality, infrastructure development, media, communication and entertainment.

Above views are of the author and not of the website kindly read disclaimer