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South India-based Non-banking finance company (NBFC), Indel Money, is reportedly planning to divest up to 15 percent to raise Rs 800-1000 crore through a combination of debt and equity from several PEs.
According to the issued statement, Indel Money will raise debt through public issuance of non-convertible debentures (NCDs) of Rs.500 crore in tranches, Rs.150-200 crore through securitizing its loan book through the issuance of various debt instruments like market-linked debentures, pass-through certificates (PTCs) & Direct assignments, and Rs. 100-150 crore by means of credit from various institutions including PSU Banks, NBFCs, and Other Financial institutions.
“The funds will be utilized for both lending and expansion activities. The NCDs have been rated CRISIL BBB/Stable and the first tranche of Rs.150 crore will hit the market in September this year,” it added.
Speaking on the fundraise, Mr. Umesh Mohanan, Executive Director and CEO, Indel Money, said, “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.”
Indel Money currently 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.