InCred Financial Services aims to float about Rs 10,000-crore AIF

 InCred Financial Services is looking to scale up its alternate investment fund business by raising about Rs 10,000 crore for corporate and special situation investments. In the first phase, it is focussing on high net-worth and ultra-high net-worth families in India. Subsequently, it will look to raise money from institutional investors, including Sovereign Wealth Funds.   

This will be the second fund, according to InCred group founder Bhupinder Singh. Some prominent Asian SWFs include Singapore based Temasek and GIC, and Abu Dhabi Investment Authority (ADIA).

The first fund – looking at special opportunities – will have a corpus of Rs 500-750 crore. The second fund would be large, he said, spelling out business plans in interaction after a media briefing for the public debt offering of group lending arm InCred Financial Services Ltd (IFSL).

The group would not carry out wholesale finance through a non-banking finance company (NBFC), only retail lending would be done through NBFC, he added.  

Non-banking finance IFSL, erstwhile KKR India Financial Services, is raising upto Rs 350 crore through the public issue of Secured, Redeemable Non-Convertible Debentures (NCDs). The base issue size is Rs 175 crore with an option to retain oversubscription up to Rs 175 crore. The NCDs offer Coupon Rate ranging from 9.45 per cent to 10.0 per annum with quarterly and annual interest option. The NCDs have two tenors of 27 months and 39 months.

At least 75 per cent 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. The balance is proposed to be utilized for general corporate purposes.

NBFC with 0.3 million customers has Rs 5,052 crore of assets under management at the end of September 2022. It provides educational loans, personal loans and secured and unsecured credit to small businesses.