Indel Money, a non-banking financial company that does not accept deposits, announced on Wednesday its plans to raise up to 500 crore rupees through the public issuance of unsecured debt obligations (NCDs) with a face value of 1,000 rupees per unit.
According to the company's statement, the issuance will open on August 18 and close on August 31, with the possibility of early closure subject to obtaining the necessary approvals.
Investors can submit one or more applications to purchase NCDs, with a minimum application size across all series totaling 10,000 rupees, and subsequent amounts must be in multiples of 1,000 rupees.
The public offering includes a base volume of 250 crore rupees, with the possibility of oversubscription for a similar amount, which will bring the total issue volume up to 500 crore rupees.
The net proceeds from this issuance will be used for further lending, financing, or refinancing existing debts and/or debt servicing. This includes paying interest and/or repaying or prepaying the company's principal and interest, as well as for general corporate purposes. The company clarified that the funds from this issuance will not be used to pay early repayment penalties, if any.
Indel Money Director, Umesh Mohanan, noted that amid the stability of the Indian economy and the sustained healthy demand for credit, organized lenders, including NBFCs providing gold loans, play an important role in meeting the financing needs of individuals and businesses.
Mohanan added: 'This fundraising will further strengthen our capital position and support our ability to meet growing credit demand, realize our long-term growth goals, and comply with regulatory requirements.'
