InCred files DRHP for IPO: NBFC plans Rs 1,250 crore fresh Issue - 5 ‘must know’ details for investors

InCred IPO plans

According to the draft papers, the public issue will consist of a fresh issue of shares worth Rs 1,250 crore along with an offer-for-sale (OFS) of nearly 9.9 crore equity shares by existing investors.

Among the shareholders planning to sell part of their stake are KKR India Financial Investments, V’Ocean Investments and several other investors.

Let’s take a look at the key details every investor need to know of the upcoming issue –

InCred IPO objectives: Expansion on the cards

As per the draft filing, the company plans to use the fresh issue proceeds mainly to strengthen the capital base of its subsidiary, InCred Financial Services.

This means that the money will help the lending business expand further. This will be supported future loan growth and improving its capital adequacy position.

The company said the funds will primarily be used to improve Tier-I capital and support onward lending activities.

Investment banks handling the issue include IIFL Capital Services, InCred Capital Wealth Portfolio Managers, Kotak Mahindra Capital, Nomura Financial Advisory and UBS Securities India.

InCred Holdings business

InCred Holdings largely operates through InCred Financial Services, which is a retail-focused middle-layer NBFC registered with the Reserve Bank of India (RBI).

The company was founded in 2017 by Bhupinder Singh. Furthermore, the company has built its business around multiple lending segments.

Its biggest business currently remains personal loans, which contribute more than 55% of its assets under management (AUM). Student loans form the second-largest category with over 22% share.

The company also lends to small businesses, provides loan-against-property products, school financing and financing solutions for financial institutions.

As of December 31, 2025, InCred’s total assets under management stood at around Rs 14,448 crore.

Focus on technology and risk management

One of the key areas noted in the filing is the company’s technology-driven lending model.

According to the DRHP, InCred uses an artificial intelligence-enabled proprietary platform to support credit assessment and risk management decisions.

The company also said its lending philosophy follows a “risk-first approach”, which it believes has helped maintain relatively stable asset quality.

The company also reported portfolio yields of 18.39% for the nine months ended December 2025, while the average borrowing cost stood at 10.05%.

Why the IPO market will watch this issue closely

The IPO will be closely tracked because the financial services sector has remained one of the busiest spaces in India’s primary market over the last few years.

InCred’s business mix across personal loans, education lending and MSME finance.

Disclaimer: This article is for informational purposes only and does not constitute an offer, solicitation, or recommendation to invest in the IPO of InCred Holdings. While the company has filed draft papers with SEBI, investors should conduct their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions based on these preliminary filings.