Indel Money aims IPO in FY27, floats debentures worth Rs 200 crore

Gold loan company Indel Money, which aims at initial public offering (IPO) in 2026-27, on Tuesday announced public issue of debentures worth Rs 200 crore.

The fourth public issue of secured, redeemable non-convertible debentures (NCDs) of Rs 1,000 face value would open for subscription on January 30 and offers highest rate option of 12.25 per cent for 72 months.

The issue includes a base size for an amount of up to Rs 100 crore with an option to retain over-subscription up to Rs 100 crore aggregating up to Rs 200 crore.

Asked as to why public offer of NCDs, Indel Money CEO Umesh Mohanan said, "this is in anticipation for IPO that we are targeting in 2026-27".

The funds raised through NCD issue will be used for the purpose of onward lending, financing and for repayment/prepayment of principal and interest on borrowings of the company, he said.

"Our business strategy is designed to capitalize on our competitive strengths to enhance our position in the gold loan industry and to expand our presence. The first half of FY'24 saw the company demonstrating a stellar performance with its profitability surging by a record 568.86 per cent buoyed by a strong AUM growth, heightened demand for gold loans, expansion into newer territories and operational efficiencies despite a challenging business environment," he said.

The company aims to continue to grow loan portfolio by expanding branch network by opening new branches, he said, adding, increased revenue, profitability and visibility are the factors that drive the branch network.

The company opened 8 branches in Delhi on Monday and plans to expand its reach in Gujarat, Rajasthan, West Bengal in the coming months to meet this increased demand with broader presence and specially designed gold loan schemes.

The Kerala-based company has about 250 branches, most of which are located in south India.