InCred Financial Services Limited NCD Company Profile:

InCred Financial Services Limited is an RBI registered non-deposit-taking systemically important NBFC. The Company caters to middle-class to lower middle-class Indian households for their personal finance needs like personal loans and education loans. Correspondingly, it also offers unsecured and secured business loans to small businesses, secured loans to K12 Indian schools for their expansion plans, supply chain financing, lending to profitable microfinance companies and financial Institutions, and escrow-backed lending through its SME vertical. InCred Demerged Undertaking was merged with Pre-demerger KKR to achieve greater economies of scale, operational rationalization and organizational efficiency, wider market reach and customer base, pooling of knowledge and expertise, and to reduce redundant cost.

InCred Financial Services Limited is coming out with a debt offering of Secured Redeemable Non-Convertible Debentures with a face value of ₹ 1000 each, a Base Issue size of ₹ 175 Crore, and an option to retain oversubscription up to ₹ 175 Crore aggregating up to ₹ 350 crores, being the Issue size. The issue opens for subscription on Monday, 9th January 2023, and will close on or before Friday, 27th January 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.

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    InCred Financial Services Limited NCD Details:

    Issue opens: Monday, 9th January 2023
    Issue closes: Friday, 27th January 2023
    Allotment: First Come First Serve Basis
    Face Value: Rs.1,000 per NCD
    Nature of Instrument: Secured Redeemable Non-Convertible Debentures
    Minimum Application: 10 NCDs (Rs.10,000) & in multiple of 1NCD
    Listing: The NCDs are proposed to be listed on BSE and NSE
    Credit Rating “CRISIL A+/Stable”
    Base Issue Size ₹ 175 Crore
    Option to Retain Oversubscription ₹ 175 Crore
    Issue Size ₹ 350 Crore
    Put/Call Option N.A.
    Trustee Catalyst Trusteeship Limited
    Registrar Link Intime India Private Limited
    Depositories NSDL and CDSL
    Category I – Institutional (“QIB”) II – Non-Institutional (“Corporates”) II – High Net worth

    Individual (“HNI”)

    (Amount aggregating to

    above ₹ 10 lakh)

    II – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh)
    Category Allocation of the overall Issue Size 20% 20% 30% 30%
    Bucket Size (₹) assuming Issue size of ₹ 350 Cr₹ ₹ 70 Cr ₹ 70 Cr ₹ 105 Cr ₹ 105 Cr

    InCred Financial Services Limited NCD

    Application form

    InCred Financial Services Limited NCD Specific Terms of the Prospectus:

    The terms of the NCDs offered under the Issue are as follows:

    Series I II III IV*
    Frequency of Interest Payment Quarterly Annual Quarterly Annual
    Tenor 27 Months 27 Months 39 Months 39 Months
    Base Coupon Rate (% p.a.) for NCD Holders in:
    Category I, II, III & IV 9.45% 9.80% 9.65% 10.00%
    Effective Yield (% p.a.) for :
    Category I, II, III & IV 9.78% 9.82% 10.00% 10.02%
    Amount (₹ / NCD) on Maturity for :
    Category I, II, III & IV ₹ 1,000/- ₹ 1,000/- ₹ 1,000/- ₹ 1,000/-

    *Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

    InCred Financial Services Limited NCD Credit strengths:

    • InCred had a diversified loan portfolio of Rs 5,052 crore as on September 30, 2022 which marks a half-yearly growth of 33% (non-annualized). This growth was driven by the addition of erstwhile KKR India’s wholesale loan portfolio to Incred’s overall AUM as part of the corporate reorganization. As on September 30, 2022, the AUM mix consists of personal loans (38%), secured school financing (10%), student loans (16%), lending to NBFCs (10%), and anchor & escrow-backed business lines (19%). Apart from these, erstwhile KKR India’s wholesale portfolio also constitutes 6% of the AUM however, this share has declined from 13% as of June 30, 2022.

    • InCred has separate policies tailored for separate product segments. These policies are aimed at supporting the growth of the business by minimizing the risks associated with growth in the loan book. The company has also established protocols and procedures to be followed when engaging with customers, as well as to determine the authority and levels to which credit decisions can be taken at various offices. Over the years, the company has gained significant experience in loan underwriting and this is now a key contributor to the business.

    • InCred has an experienced collections team which, with the legal team, has enabled it to maintain effective collection efficiencies through economic cycles. The company’s centralised credit & risk analysis processes combined with its dedicated collections team help maintain the quality and growth of the total AUM.

    InCred Financial Services Limited NCD Credit challenges:

    • InCred has a limited operating history and evolving business making it difficult to evaluate its business and future operating results on the basis of past performance, and the future results may not meet or exceed the past performance.

    • InCred may not be able to recover, on a timely basis or at all, the full value of collateral or amounts which are sufficient to cover the outstanding amounts due under defaulted loans.
    • InCred’s loan book comprises unsecured loans. The company’s inability to recover the amounts due from customers in connection with such loans in a timely manner could adversely affect operations and profitability.

    Registrar to the Issue:


    C- 101, 247 Park, LBS Marg, Vikhroli (West)

    Mumbai – 400 083, Maharashtra, India

    Tel: +91 810 811 4949

    Fax: +91 22 4918 6060


    Investor Grievance Email:

    Contact Person: Shanti Gopalkrishnan