Indel Money launches Rs 150 crore NCD
23 Sep 2021
KOLKATA: Indel Money, a non-deposit taking and a non-systemically important non-banking finance company in the gold loan sector, on Thursday announced public issue of secured and unsecured non convertible debentures (NCDs) of face value of Rs 1,000 each. The issue, which opened today, closes on Oct 18 with an option of early closure in case of early over subscription.
Umesh Mohanan, executive director and CEO, Indel Money said,” Our business strategy is designed to capitalize on our competitive strengths and enhance our position in the gold loan industry and to expand our presence. Our prudent risk management policies and development of tailored credit procedures will allow us to expand our gold loan financing. These NCD funds will help us expand our borrowing mix.”
The secured and unsecured NCDs come with a face value of Rs 1,000 each. The issue includes a base issue size for an amount of up to Rs 75 crore with an option to retain oversubscription up to Rs 75 crore aggregating up to Rs 150 crore. The lead manager to the issue is Vivro Financial Services.
The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/ prepayment of principal and interest on borrowings of the company (at least 75%) and general corporate purposes (maximum of up to 25%).
The balance fund is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the gross proceeds, in compliance with the SEBI NCS regulations.