Indel Money, a south India-based non-banking finance company (NBFC), will raise Rs.800-1000 crore through a combination of debt and equity.
The company will raise debt through public issuance of non-convertible debentures (NCDs) of Rs.500 crore in tranches. It will also raise Rs.150-200 crore by securitising its loan book through the issuance of various debt instruments like market-linked debentures, pass-through certificates (PTCs) and Direct assignments. Rs. 100-150 crore by means of credit from various institutions including PSU Banks, NBFCs and Other Financial institutions.
The NCDs have been rated CRISIL BBB/Stable and the first tranche of Rs.150 crore will hit the market in September this year. To raise equity, Indel Money is in talks with a number of PEs to divest up to 15 per cent. The funds will be utilised for both lending and expansion activities.
The gold loan NBFC expects 55% growth in AUM in FY21-22 over FY20-21 banking on burgeoning demand. The gold loan business has increased by 52% year-on-year in FY20-21 to Rs 513 crore.Indel Money presently has 191 physical branches across Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana and has plans to take the branch tally to 400 by FY23-24. It has plans to open 50 branches in Odisha and Maharashtra in Q4 FY21-22 and 45 branches in Gujarat and West Bengal in Q1 FY22-23.
Mr. Umesh Mohanan, Executive Director and CEO, Indel Money said, “Because of the prevailing economic scenario and easy eligibility criteria, the gold loan business is witnessing robust demand and disbursal growth. Raising debt and equity will help the company meet the growing demand and funding requirements to chart out a faster growth trajectory by expanding into new geographies. The funding will build a strong foundation for stable growth for us.”