KKR-backed InCred said to be in talks with advisers on $470 million IPO

By Saikat Das

 

Indian lending firm InCred Financial Services is in talks with potential advisers for an initial public offering to raise about Rs 4,000 crore ($470 million), people familiar with the matter said.

 

The Mumbai-headquartered company, a partner of KKR & Co., is in discussions with firms including IIFL Securities, Kotak Mahindra Bank Ltd. and Nomura Holdings Inc. about working on an IPO, the people said, asking not to be identified because the information isn’t public.  

 

InCred Financial plans to file documents soon for a share offering in Mumbai that might take place by October, the people said. It could seek a valuation of at least Rs 15,000 crore, though plans may change, they added. 

 

InCred Financial’s investment banking arm is also likely to work on the IPO, while Khaitan & Co is slated to be legal adviser, the people said.

 

A spokesperson for InCred Financial said an IPO could be an option for the company to raise capital if necessary, but no investment banks have been appointed at this stage. 

 

Representatives for IIFL, KKR and Nomura declined to comment. Khaitan and Kotak didn’t respond to requests for comment. 

 

InCred Financial is considering the share sale despite volatility in global markets that has impacted fundraising plans by, among others, LG Electronics Inc.’s India unit, with Bloomberg News reporting last week that its IPO could be postponed. Still, UBS Group AG is turning more positive on Indian stocks, upgrading the market to neutral from underweight for its defensive appeal. 

 

The NSE Nifty 50 Index has risen about 3.4 per cent in April, despite the slumps seen worldwide in stocks after US President Donald Trump rolled out tariffs. The Indian stock gauge is, however, down more than 7 per cent from a September peak.

 

InCred Financial’s credit arm — InCred Alternative Investments — plans to raise Rs 1,500 crore through a new fund to tap demand for private credit, its chief investment officer said in an interview with Bloomberg earlier this month. 

 

InCred Financial was founded in 2016 by Bhupinder Singh and works in areas such as retail lending, small business lending and education finance. KKR India Financial Services Ltd. announced a partnership with the firm in 2022.