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InCred Financial Services Limited announces Public Issue of up to ₹ 300 crore of Secured NCDs

October 13, 2023: InCred Financial Services Limited (formerly known as KKR India Financial Services Limited), a non-deposit taking systemically important NBFC registered with RBI, has filed its prospectus dated October 11, 2023 for public issue of secured, rated, listed, redeemable, non-convertible debentures of the face value of ₹ 1,000 each. The Issue opens on Wednesday, October 25, 2023, and closes on Tuesday, November 7, 2023 with an option of early closure or extension as may be decided by the Board of Directors or Finance Committee of the Company in compliance with Securities and Exchange Board of India Issue and listing of (Non-Convertible Securities) Regulations 2021, as amended (“SEBI NCS Regulations”). The NCDs have been rated CRISIL A+/Stable (pronounced as CRISIL A plus rating with Stable outlook) by CRISIL Ratings Limited. Mr. Bhupinder Singh, Whole Time Director and Chief Executive Officer, of InCred Financial Services Limited said, “We have established ourselves as a diversified lending NBFC with a business model rooted in cutting edge tech and analytics and focussed on risk metrics reflected in the strength of our asset quality. This is a consequence of a tried and tested approach to credit risk and collections. We continuously leverage technology and data-science to make lending quick, simple and hassle-free. A key component of our growth so far has been the success of our liabilities strategy, and this public issuance of NCDs will play a role in further diversifying and strengthening our borrowing mix” The minimum application size would be ₹ 10,000 (i.e. 10 NCDs) and thereafter in multiples of ₹ 1,000 (i.e. 1 NCD) thereof. This issue has maturity / tenure options of 18 months, 24 months and 36 months for NCDs with monthly, quarterly and an annual coupon payment being offered across series I, II, III, IV and V. Effective yield for NCD holders in various categories ranges from 9.88% to 10.29% per annum. Out of the net proceeds of the Issue, at least 75% of the net proceeds shall be utilised for the purpose of onward lending, financing and for repayment of interest and principal of existing borrowings of the Company) and a maximum up to 25% of the net proceeds may be utilised for general corporate purposes. For the fiscal year 2023, the company’s consolidated total revenue from operations stood at ₹ 864.58 crore and consolidated net profit before tax for the fiscal year 2023 was ₹ 203.17 crore. For the three months ending June 2023, total revenue from operations stood at ₹ 266.94 crore and profit before tax for the period stood at ₹ 83.00 crore. The terms of each series of Secured NCDs, offered under the Issue are set out below: Series I II III IV V* Frequency of Interest Payment Monthly Quarterly Monthly Annual Monthly Minimum Application ₹10,000 (10 NCDs) across all series In Multiples of thereafter (₹) ₹ 1,000 (1 NCD) Face Value/ Issue Price of NCDs (₹/NCD) ₹1,000 Tenor 18 Months 24 Months 24 Months 36 Months 36 Months Coupon (% per annum) for NCD Holders in all categories 9.48% 9.55% 9.66% 10.30% 9.84% Effective Yield (% per annum) for NCD Holders in all categories 9.88% 9.88% 10.08% 10.28% 10.29% Mode of Interest Payment Through various modes available Redemption Amount (₹/NCD) on Maturity for NCD Holders in all categories ₹1,000 Staggered Redemption in eight (8) quarterly payments of ₹125 each, starting from 1st quarter** until maturity ₹ 1,000 Staggered Redemption in Three (3) annual payments of ₹333 for year 1, ₹333 for year 2, and ₹ 334 for year 3 starting from 1st anniversary** until maturity ₹ 1,000 Maturity/Redemption Date (from the Deemed Date of Allotment) 18 Months 24 Months (Staggered Redemption as per “Principal Redemption Schedule and Redemption Amounts for Series II and Series IV NCDs“as given on page 377 of the Prospectus) 24 Months 36 Months (Staggered Redemption as per “Principal Redemption Schedule and Redemption Amounts for Series II and Series IV NCDs“as given on page 377 of the Prospectus) 36 Months Put and Call Option Not Applicable Nature of Indebtedness Secured *The Company shall allocate and allot Series V NCDs (Monthly option) wherein the Applicants have not indicated the choice of the relevant NCD Series. ** From the deemed date of allotment. JM Financial Limited, and InCred Capital Wealth Portfolio Managers Private Limited* are the lead managers to the Issue (“Lead Managers”). CRISIL Ratings Limited is the Credit Rating Agency. Catalyst Trusteeship Limited is the Debenture Trustee to the Issue and Link Intime India Private Limited is the Registrar to the Issue. * InCred Capital Wealth Portfolio Managers Private Limited is deemed to be an associate of the Issuer as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, InCred Capital Wealth Portfolio Managers Private Limited would be involved only in marketing of the Issue and as per Regulation 25 (3) of SEBI NCS Regulations shall not issue a due diligence certificate. Please note that the allotment under Issue will be on the basis of the date of upload of each application into the electronic book of the Stock Exchange in accordance with the SEBI Master Circular. However, from the date of oversubscription and thereafter, the allotments will be made to the applicants on a proportionate basis. For further details, refer section titled “Issue Procedure” on page 399 of the Prospectus.

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Yarn Manufacturer Sanathan Textiles refiles DRHP to raise Rs 800 crs Mumbai-based Sanathan Textiles, one of the few companies in India having a presence across the polyester, cotton, and technical textile sectors has refiled its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise Rs 800 crore through its Initial Public Offering (IPO). The IPO with a face value of Rs 10 comprises of fresh issue of equity shares aggregating up to Rs 500 crore and an offer for sale of up to Rs 300 crore by Promoters and Promoter Group. The offer for sale consists of the sale of equity shares of up to Rs 61.87 crore by Paresh Vrajlal Dattani, Rs 69.35 crore by Ajay Vallabhdas Dattani, Rs 71.12 crore by Anilkumar Vrajdas Dattani, Rs 74.37 crore by Dinesh Vrajdas Dattani, Rs 50 Lakh by Vajubhai Investments Private Limited, Rs 50 Lakh by Vallabhdas Dattani HUF, Rs 4.5 crore by Sonali Ajaykumar Dattani, Rs 50 Lakh by Dattani Dineshkumar Vrajdas HUF, Rs 7 crore by Beena Paresh Dattani, Rs 3.5 crore by Anilkumar Vrajdas Dattani HUF, Rs 6 crore by Paresh Kumar V Dattani HUF, Rs 25 Lakh by Jayshree Anilkumar Dattani, Rs 2.5 Lakh by Ajay Kumar V Dattani HUF, and Rs 50 Lakh by Vallabhdas Dattani. Additionally, the company, in consultation with the lead bankers to the issue may consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore. Proceeds from the fresh issue of shares will be used to the extent of Rs 175 crore for repayment or pre-payment, in full or in part, of certain of its outstanding borrowings availed by the Company, Rs 210 crore for investment in its subsidiary viz. Sanathan Polycot Private Limited for funding its long-term working capital requirements besides general corporate purposes. Sanathan Textiles operates three distinct yarn business divisions: Polyester yarns, cotton yarns, and yarns for technical textiles and industrial applications. These divisions are currently managed under a single corporate entity. The company specializes in value-added yarn products, including dope-dyed, superfine/micro, functional, industrial, and technical yarns, as well as cationic dyeable and specialty yarns. These products result from extensive in-house research efforts. For the nine months ended December 31, 2023, value added products sold as a % of Total products sold stood at 48.50% which is significantly higher than 41.97% in Fiscal 2021. Additionally, in FY22 it has also started its sustainable textile initiative under the brand Sanathan Rivero where it recycles waste plastic bottles and converts them into yarns for fabrics The Products are manufactured at the Silvassa facility, which has grown its capacity significantly to 223750 metric tonnes per annum (MTPA) as of December 31, 2023, from 213,725 metric tonnes per annum (MTPA) in Fiscal 2021 at the Silvassa facility across the three yarn divisions. Recently it has acquired 80 acres of land in Wazirabad, Punjab where it is at an advanced stage to commission a greenfield facility that will manufacture Polyester yarn products and will increase its capacity by 550 tonnes per day to 1500 tonnes per day. As of December 31, 2023, Sanathan Textiles had developed over 2,800 active varieties of yarn products and maintained more than 30,000 stock-keeping units (SKUs). The company’s manufacturing capabilities encompass a diversified product range of over 14,000 yarn varieties and more than 190,000 SKUs, serving various end uses. Over the years, the Mumbai-based company has established long-standing relationships with consumer brands such as Welspun India Limited, Valson Industries Limited, G.M. Fabrics Private Limited, and many more. In terms of customer reach, the company served 1,466 customers during the nine months ended December 31, 2023, and 1,684 customers during Fiscal 2023. Sanathan Textiles has a strong international presence, exporting its products to 26 countries during the nine months ended December 31, 2023, and 29 countries throughout Fiscal 2023. It has a network of over 902 distributors across seven countries, including India, Argentina, Singapore, and Portugal. The share of Domestic operations as a % of revenue from operations have increased from 87.39% in Fiscal 2021 to 95.60% for the nine months ended December 31, 2023, bringing down the share of exports as a % of revenue from operations to 4.40% for the nine months ended December 31, 2023 from 12.61% in Fiscal 2021. The companies consolidated revenue from operations during the fiscal year 2023 increased 4.52% to Rs 3,329.21 crore from Rs 3,185.32 crore in the previous year. Profit after tax was Rs 152.74 crore for the financial year 2023. For the nine months ended December 31, 2023, revenue from operations stood at Rs 2201.37 crore, and profit after tax stood at Rs 81.59 crore. Its total borrowings reduced from ₹ 541.16 cr on April 1, 2021 to ₹ 374. 01 cr on February 29, 2024. Dam Capital Advisors Limited and ICICI Securities Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on BSE and NSE.

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