InCred Holdings Updates SEBI Filing For IPO With ₹1,250 Crore Fresh Issue

InCred Holdings has filed updated draft papers with the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), with people familiar with the development estimating the issue size at around ₹3,000-4,000 crore.

The company is targeting a valuation of nearly ₹15,000 crore through the IPO, according to people aware of the matter. The updated draft red herring prospectus (DRHP), filed late on Wednesday, showed the InCred Holdings IPO will consist of a fresh issue of equity shares worth up to ₹1,250 crore and an offer for sale (OFS) of up to 9.9 crore equity shares by existing shareholders.

Existing Investors To Sell Shares

Shareholders participating in the OFS include KKR India Financial Investments Pte Ltd, MNI Ventures, MEMG Family Office LLP, and V'Ocean Investments Ltd. The company said proceeds from the fresh issue will be infused into its wholly-owned subsidiary, InCred Financial Services Ltd (IFSL), to strengthen Tier-I capital, support lending operations, and improve capital adequacy.

People familiar with the development said the company intends to launch the IPO during a suitable market window. They added that there is no urgency to raise funds immediately, allowing the lender flexibility on timing.

Company Growth And Financial Performance

Founded in 2017 by Bhupinder Singh, the company operates through InCred Financial Services Ltd (IFSL), a diversified middle-layer non-banking financial company (NBFC) registered with the Reserve Bank of India. InCred had confidentially filed draft papers for the IPO in November and has already received SEBI approval for the public issue.

According to a CRISIL report cited in the draft papers, InCred Finance emerged as the fastest-growing diversified NBFC in terms of profit after tax compound annual growth rate (CAGR) between FY23 and FY25 among diversified peers. It also ranked as the second fastest-growing company in assets under management growth during the period.

The company’s assets under management rose at a CAGR of 44% between FY23 and FY25 to ₹12,585 crore as of 31 March 2025. Profit after tax increased at a CAGR of 85% to ₹373 crore during the same period.

As of 31 December 2025, its assets under management (AUM) stood at ₹14,448 crore. Profit after tax for the first nine months of FY26 came in at ₹290 crore, while disbursements during the April-December period stood at ₹6,683 crore.

Also Read - SEBI Defines Significant Indices, Sets ₹20,000 Crore AUM Threshold

Loan Book And Asset Quality

The lender’s portfolio is spread across five business verticals. Personal loans contributed 55.56% of total AUM, while student loans accounted for 22.15%. The company said its lending model follows a risk-first approach supported by an AI-enabled proprietary technology platform.

Gross non-performing assets (NPAs) stood at 2.28% as of 31 December 2025, compared with 2.05% a year earlier. Net NPA stood at 0.87%. The company operated 158 branches across 152 cities in 19 states and union territories as of December 2025. It had reached across more than 17,000 pin codes. Its capital adequacy ratio stood at 24.97% as of 31 December 2025, above the regulatory requirement of 15%.

Sources:

The Economic Times

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