Indel Money NCD opens on August 18: Know issue details

Indel Money Limited has announced a public issue of secured, rated, listed and redeemable Non-Convertible Debentures (NCDs). It comprises a base issue of ₹250 crore, with an option to retain oversubscription up to ₹250 crore, aggregating up to ₹500 crore.

Indel Money Limited is an RBI-registered NBFC-Middle Layer, focused primarily on gold loans against the pledge of household gold jewellery. The company also offers loans against property, business loans, personal loans and consumer durable loans.

As of June 30, 2026, Indel Money had 397 branches across 12 states and 4 union territories. Its gold loan customers are business owners, merchants, traders, farmers, salaried individuals and families, primarily from rural and semi-urban areas.

Indel Money NCD issue will open on Tuesday, August 18, 2026 and remain open until Monday, August 31, 2026, with an option of early closure, subject to relevant approvals.

Investors can make one or more applications for the NCDs, subject to a minimum application size of ₹10,000 across all series collectively and in multiples of ₹1,000 thereafter, Indel money said in a statement.

The merchant bankers to the issue are Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited and IDBI Capital Markets & Securities Limited.

Consolidated Financial Performance

Indel Money’s Gross Non-Performing Assets (GNPA) were at 1.65%, Net Non-Performing Assets (NNPA) at 1.30% and Tier I Capital Adequacy Ratio (GNPA) at 18.95% as of March 31, 2026.

Objective of the issue

The net proceeds of the issue will be utilised for the following purposes:

• Around 75% for onward lending, financing or refinancing of existing debt and/or debt servicing.
• Around 25% for general corporate purposes.

Strengths and opportunities

• Indel Money’s core business is gold loans and makes up around 90% of its loan book as of June 2025. The gold loan portfolio grew from ₹579 crore in FY23 to ₹1,404 crore in FY25, showing strong scaling.
• The company had 373 branches across 14 states/UTs by June 2025, up from 245 in FY23. It follows a “Bang in Center” strategy (setting up branches in the closest vicinity of the competitor) and a hub-and-spoke model. Both are aimed at penetrating rural and semi-urban markets where formal credit access is relatively limited.
• AUM rose from ₹1,533.8 crore in FY24 to ₹2,334.4 crore in FY25, while PAT increased from ₹39.86 crore to ₹44.58 crore. More importantly, GNPA improved sharply from 5.0% to 1.9% during the same period.

Risks and threats

• Since Indel’s business is funded significantly through borrowings, any rise in funding costs or difficulty in raising funds could pressure profitability and liquidity.
• Despite expanding to 14 states/UTs, around 65% of AUM still comes from five southern states of Karnataka, Tamil Nadu, Andhra Pradesh, Telangana and Kerala.