Indel Money Announces Third Tranche Of Its Public Issue Worth Rs 100 Crore The company will open its issue on June 6 and close on June 19 (with an option of early closure in case of early oversubscription).
By Entrepreneur Staff •
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Indel Money Limited, a non-banking finance company in the gold loan sector, has announced its third tranche of public issue of Secured Non-Convertible Debentures, having a face value of INR 1000 each.
The company will open its issue on June 6 and close on June 19 (with an option of early closure in case of early oversubscription).
"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 portfolioby sweating our current branch network and by expandingsamethrough 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," said Umesh Mohanan, Executive Director and CEO, Indel Money.
The NCDs which will be issued will have a Base Issue Size of amount up to INR 50 crore, with the option of retaining oversubscription up to INR 50 crore, aggregating up to INR 100 crore. The official press release also noted that the funds raised will be used for onward lending and financing by the company.
The upcoming issue will be primarily managed by Vivro Financial Services Private Limited.
Indel Money witnessed a 210 per cent growth in its disbursement in FY22-23, having disbursed a total loan amount of INR 3000. Notably, gold constitutes 92 per cent of its loan portfolio.
The company is planning to raise an approximate amount of INR 300 crores through the public issuing of debentures in FY23-24 and will be using the raised amount to fund its gold loan business. Additionally, it will also raise private equity to venture into new geographies in FY24-25.
