InCred Holdings files updated DRHP with SEBI for ₹1,250-crore IPO

InCred Holdings, the parent company of NBFC arm InCred Financial Services, has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO).

According to the UDRHP, the Bengaluru-based company plans to raise ₹1,250 crore through a fresh issue of shares along with an offer for sale (OFS) of up to 9.90 crore equity shares.

The OFS includes participation from shareholders such as KKR India Financial Investments Pte offloading 4 crore equity shares, MNI Ventures selling nearly 2 crore shares, MEMG Family Office LLP and V’Ocean Investments Ltd, among others.

Capital boost

The company said net proceeds from the fresh issue will be invested in its wholly owned subsidiary, InCred Financial Services Ltd (InCred Finance), to augment its capital base, strengthen tier-I capital and support onward lending.

The company is also considering a pre-IPO placement round, which will not exceed 20 per cent of the size of the fresh issue, according to the filing on Wednesday.

InCred had confidentially filed draft papers for its IPO with SEBI in November and has already received the regulator's approval.

Promoted by Bhupinder Singh in 2017, InCred Finance is a diversified, retail-focused middle-layer non-banking financial company registered with the Reserve Bank of India. The lender operates across five segments — personal loans, student loans, secured business loans, specialised MSME loans and lending to financial institutions.

As on December 31, 2025, the company’s assets under management (AUM) stood at ₹14,447.86 crore. Personal loans contributed 55.56 per cent of AUM at ₹8,027.12 crore, followed by student loans at 22.15 per cent or ₹3,200.51 crore.

For FY25, the company reported a profit after tax (PAT) of ₹373.15 crore and return on assets (ROA) of 3.45 per cent, with AUM at ₹12,585.07 crore. Between FY23 and FY25, AUM and PAT grew at a CAGR of 44.04 per cent and 84.97 per cent, respectively.

For the nine months ended December 31, 2025, PAT stood at ₹290.14 crore, while disbursements were ₹6,683.28 crore. The NBFC had a capital adequacy ratio (CRAR) of 24.97 per cent as of December 2025, above the regulatory requirement of 15 per cent, and is rated AA-/Stable by Crisil Ratings and ICRA.

The company operates through 158 branches across 152 cities in 19 States and Union Territories and has lending partnerships with 51 institutions. Its app had over 4.5 lakh users as of December 31, 2025.

IIFL Capital Services, InCred Capital Wealth Portfolio Managers, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and UBS Securities India are the book-running lead managers to the issue.