Non-banking financial company InCred Financial Services Limited will open its public issue of Secured, Redeemable Non-Convertible Debentures (NCDs) today, 9 January. The public issue, which will last till 27 January, aggregates to a total of Rs 350 crore. The InCred Financial Services Limited NCDs have a face value of Rs 1,000 each for an amount totalling Rs 175 crore, with the option to retain oversubscription up to Rs 175 crore. The NCDs have a rating of CRISIL A+/Stable. The registrar of InCred Financial Services Limited public issue is Link Intime India Private Limited. The book running lead manager is JM Financial.
Read more: SBI WhatsApp service: These 9 services are available on SBI WhatsApp Banking platform
What are NCDs?
Non-Convertible Debentures are those long term financial instruments which cannot be converted into shares. They may give periodic interest payments called coupon payments and are used by both governments and corporations to raise money.
Details about the InCred Financials Services public issue:
The NCDs will be allotted on a first-cum first-serve basis by the company. “The NCDs offer Coupon Rate ranging from 9.45 percent to 10.00 percent per annum with quarterly and annual interest options. The NCDs have two tenors of 27 months and 39 months,” InCred has stated. The debentures will be listed on the National Stock Exchange and Bombay Stock Exchange. The BSE will be the designated stock exchange.
The interest will be paid quarterly and annually. The minimum amount that can be bought is 10 NCDS, meaning investors have to shell out at least Rs 10,000.
Read more: Goldman Sachs to Cut About 3,200 Jobs this Week After Cost Review: Report
At least 75 percent of the funds raised through the process will be used by InCred for repayment of interest and principal of existing debt of the company as well as financing and onward lending. The balance will be utilised for general corporate purposes and will not exceed 25 percent of the amount raised, in line with the directives of the Securities and Exchange Board of India (SEBI).
Regarding the issue, Bhupinder Singh, the director and chief executive officer of InCred, has stated in a press release that “This public issuance of NCDs will play a role in further diversifying and strengthening our borrowing mix.”
InCred Financial Services Limited helps Indian households with their personal finance needs like education loans, personal loans.
