Indel Money Limited, a leading Non-Banking Financial Company (NBFC) specializing in gold loans, has announced its fourth public issue of secured Non-Convertible Debentures (NCDs) with a face value of Rs 1,000 each. The subscription period for the NCDs is scheduled to open on January 30, 2024, and close on February 12, 2024. This strategic move aligns with Indel Money's status as one of the fastest-growing entities in the gold loan sector, showcasing impressive profit growth exceeding 13 times when compared to Fiscal 2022.
Umesh Mohanan, the Executive Whole Time Director of Indel Money Limited, emphasized the company's consistent efforts to optimize operating expenditures and enhance branch productivity metrics. The NCD issue serves the dual purpose of diversifying borrowing and investor profiles while facilitating the company's loan portfolio growth. The funds generated through the NCDs will be directed towards onward lending, financing activities, and the repayment of principal and interest on existing borrowings, reinforcing the company's financial position.
The NCD issue encompasses a base size of up to Rs 100 crore, with an option for oversubscription up to Rs 100 crore totaling up to Rs 200 crore. Vivre Financial Services Private Limited has been appointed as the lead manager for the issue, overseeing the successful execution of this financial initiative. The company's commitment to expanding its geographic footprint is evident in its goal to increase its branch network to over 425 branches across 12 states by fiscal year 2025, including strategic expansion into eastern and northern states in India.
Indel Money Limited, with its strong focus on gold loans constituting 82% of its loan portfolio, reported a noteworthy total outstanding Assets Under Management (AUM) of Rs 81,740.86 lakhs as of September 30, 2023. This figure represents a substantial growth trajectory from Rs 64,768.53 lakhs reported as of March 31, 2023. Having successfully launched three previous public issues of NCDs, the company has raised over Rs 260 crore, further establishing its credibility in the financial market.
