The company has opened eight branches in Delhi-NCR, in line with its plans to open 16 branches by March 2024
Indel Money Limited, a Non-Banking Financial Company (NBFC) operating in the gold loan sector, has unveiled its fourth public issue of secured Non-Convertible Debentures (NCDs) with a face value of Rs 1,000 each. The subscription window for the issue commences on Tuesday, January 30, and concludes on February 12, with the possibility of early closure should oversubscription occur sooner than anticipated.
Indel Money Limited has launched eight new branches in the Delhi-NCR region as part of its expansion strategy, aligning with its goal of establishing a total of 16 branches by March 2024.
Umesh Mohanan, Executive Whole Time Director at Indel Money Limited, commented, "Our business strategy focuses on leveraging our competitive advantages to strengthen our position in the gold loan sector and broaden our footprint. In the first half of FY24, the company delivered exceptional performance, with profitability soaring by an impressive 568.86%. This remarkable growth was driven by increased Assets Under Management (AUM), robust demand for gold loans, expansion into new territories, and operational efficiencies, despite facing challenging market conditions. We are committed to further expanding our loan portfolio by extending our branch network and introducing new branches. The expansion of our branch network is fueled by the goals of enhanced revenue, profitability, and market presence. Through this issue, we aim to diversify our funding sources."
Indel Money Limited has recently inaugurated eight branches across the Delhi-NCR region, aligning with its ambitious expansion target of establishing a total of 16 branches by March 2024.
Umesh Mohanan, the Executive Whole Time Director of Indel Money Limited, articulated, "Our strategic approach is meticulously crafted to leverage our inherent strengths, bolstering our standing in the gold loan domain while expanding our footprint. The first half of FY24 showcased remarkable performance, with profitability skyrocketing by an unprecedented 568.86%. This remarkable surge was underpinned by robust growth in Assets Under Management (AUM), escalating demand for gold loans, forays into new territories, and operational efficiencies, all amid a challenging business landscape. Our objective remains steadfast: to augment our loan portfolio by fortifying our branch network and introducing new branches. Enhanced revenue, profitability, and market presence serve as the pivotal drivers behind our branch expansion strategy. Through this initiative, we endeavor to diversify our funding channels."
Umesh Mohanan also emphasized, "We are observing a consistent rise in the demand for gold loans in Delhi. To cater to this growing demand effectively, we are expanding our presence in the region and introducing specially tailored gold loan schemes."
Key Points:
- Secured Non-Convertible Debentures (NCDs) with a face value of Rs 1,000 each
- The issue comprises a base issue size of up to Rs 100 crore, with the provision to retain oversubscription up to Rs 100 crore, totaling up to Rs 200 crore
- The issue period commences on Tuesday, January 30, 2024, and concludes on Monday, February 12, 2024
- Option VIII offers a doubling of investment in 72 months.
Here are the key details of the issue:
- Coupon yields up to 12.25% per annum.
- Secured Non-Convertible Debentures (NCDs) with tenures ranging from 366 days to 72 months.
- Minimum application size is 10 NCDs, equivalent to Rs 10,000, applicable across all Options of NCDs.
The issue comprises a base issue size of up to Rs 100 crore, with the option to retain oversubscription up to Rs 100 crore, resulting in an aggregate of up to Rs 200 crore. Vivro Financial Services Private Limited is the lead manager of the issue.
The proceeds from this issue will be allocated towards onward lending, financing, and the repayment/prepayment of principal and interest on the company's borrowings.
As of September 30, 2023, Indel Money Limited reported a total outstanding Assets Under Management (AUM), excluding off-balance sheet assets, of Rs 81,740.86 lakh, compared to Rs 64,768.53 lakh as of March 31, 2023. Gold loans constituted approximately 82% of the loan portfolio, supported by a branch network of 250 branches as of September 30, 2023.
Indel Money Limited aims to expand its geographic presence by Fiscal 2025, targeting over 425 branches across 12 Indian states, with plans to extend operations to states in East and North India.