R ARIVANANTHAM
CHENNAI, JAN 31
Indel Money Limited, one of the fastest growing NBFCs in the gold loan sector, on Tuesday announced the 4th public issue of Secured NCDs of face value of Rs 1,000 each. The Issue opens on Tuesday, January 30, 2024 and closes on Monday, February 12, 2024 (with an option of early closure in case of early over subscription). The issue has been received 24 % subscription till Wednesday (January 31, 2024), said Jijith Raj, EVP & Business Head, Indel Money Limited.
The company had launched three public issues of NCDs since 2021 and raised more than Rs 260 crore.
- Secured NCDs of face value of Rs 1,000 each
- The Issue includes a Base Issue Size for an amount of up to Rs 100 crores with an option to retain over-subscription up to Rs 100 crores aggregating up to Rs.200 crores
- Issue opens on Tuesday, January 30th, 2024 and closes on Monday, February 12th, 2024
- Doubling of investment in 72 months – Option VIII
- Coupon yielding up to 12.25% per annum
- Secured NCDs with tenure ranging from 366 days to 72 months
- Minimum application size 10 NCDs (Rs 10,000) across all Options of NCDs
- The company plans to open 30 branches in Gujarat by March 2024
Addressing the media Umesh Mohanan, Executive Whole Time Director, Indel Money Limited said, “Being one of the fastest growing gold loan NBFC with growth in profit of more than 13 times for period ended September 2023 as compared to Fiscal 2022, we are consistently focusing on optimization of operating expenditure and increase in branch productivity metrics. We have witnessed healthy AUM growth during period ended September 30, 2023. Being one of the few gold loan companies to offer long term gold loan schemes in India, we aim to continue to grow our loan portfolio by expanding our branch network and further enhance revenue, profitability and visibility. The NCD issue will help us diversify our borrowing and investor mix.”
“We closed the December quarter with an outstanding loan book of Rs 1,410 crore, and going by the current monthly run-rate, we should be adding another Rs 200 crore to the AUM by March, taking the loan book to Rs 1,600 crore. We closed last fiscal with an AUM of Rs 1,154 crore from which we had earned a net income of Rs 38 crore,” added Umesh Mohanan.
Umesh Mohanan said that 35 per cent of the company’s total borrowing is from banks and it continues to grow as the portfolio of the company has been growing consistently. He said that the company has a diverse source of funding which limited the losses after the Reserve Bank of India’s norm on unsecured lending.
On expansion plans, he said the company will be entering Gujarat with 30 branches and the Andaman islands this quarter and Bengal and the northeast next fiscal. He said that the company will open over 100 branches with in this fiscal and it would be increased to 425 in course of time. Out of the total number of 268 branches, 80 branches are in Tier – II and Tier – III cities of Tamil Nadu. Reply to a query, he said that three more branches would be opened in TN alone, he added.
The NCDs have been given a credit rating of ‘BBB+’ with a ‘Stable’ outlook by CRISIL Ratings Limited.
The issue includes a Base Issue Size for an amount of up to Rs.100 crores with an option to retain over-subscription up to Rs.100 crores aggregating up to Rs.200 crores. 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 borrowings of the Company.
The company introduced long-term loans up to three years in the segment that used to have only three to six months tenor before. It also provides unsecured consumer credit apart from small business loans and loans against property.
Indel Money Limited had a total outstanding AUM (excluding off-balance sheet assets) amounting to Rs.81,740.86 lakhs as on September 30, 2023 as compared to Rs.64,768.53 lakhs as on March 31, 2023. Gold Loans takes up ~82% of the loan portfolio with a branch network of 250 branches as on September 30, 2023. Indel Money Limited intends to widen our geographic footprint by Fiscal 2025 to over 425 branches across 12 Indian states, expanding to eastern and northern states in India.
The issue will be listed on the BSE.
The lead manager to the issue is Vivro Financial Services Private Limited.
