InCred Financial Services Limited has announced the public issue of secured and redeemable Non-Convertible Debentures (NCDs) of the face value Rs 1,000 each, amounting to Rs 175 crore with an option to retain oversubscription up to Rs 175 crore aggregating to a total of Rs 350 crore. The issue for the same has opened for subscription today and will close on Friday, January 27, 2023.
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The NCDs proposed under the issue have been rated CRISIL A+/Stable by CRISIL Ratings Limited. The lead manager for the issue is JM Financial Limited, InCred Financial Services Limited said in a statement.
What are NCDs?
Non-convertible debentures (NCDs) are fixed-income instruments issued as a public issue to accumulate long-term capital appreciation.
They fall under the debt category and have a fixed maturity date, and the interest can be paid along with the principal amount either monthly, quarterly, or annually depending on the fixed tenure specified.
Key details about Incred's NCDs
The NCDs offer coupon rate ranging from 9.45 percent to 10.00 percent per annum with quarterly and annual interest option. The NCDs have two tenors of 27 months and 39 months.
Here's a table showing issue structure below on coupon rates and tenors for each series of NCDs:
| Series | I | II | |
| Frequency of Interest Payment | Quarterly | Annual | |
| Minimum Application | Rs 10,000 (10 NCDs) across all series | ||
| In Multiples of thereafter (Rs) | Rs 1,000 (1 NCD) | ||
| Face Value / Issue Price of NCDs (₹/ NCD) | Rs 1,000 | ||
| Type of Instrument | Secured NCDs | ||
| Tenor | 27 Months | 27 Months | |
| Coupon (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV | 9.45% | 9.80% | |
| Effective Yield (% per annum) for NCD Holders in Category I, Category II, Category III & Category IV | 9.78% | 9.82% | |
| Mode of Interest Payment | Through Various Modes available | ||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category I, Category II, Category III & Category IV | Rs 1,000 | Rs 1,000 | |
| Maturity / Redemption Date (from the Deemed Date of Allotment) | 27 Months | 27 Months | |
| Put and Call Option | Not Applicable | ||
The NCDs are proposed to be listed on on BSE Limited and National Stock Exchange of India Limited where BSE is the designated stock exchange.
At least 75 percent of the funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25 percent of the amount raised in the issue, in compliance with the Securities and Exchange Board of India (Sebi).
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