Gold loan-focussed non-banking finance company Indel Money on Wednesday said it plans to raise Rs 800-1,000 crore through a mix of debt and equity to fund business growth.
The company said it is in talks with a number of private equity (PE) funds to divest up to a 15 per cent stake.
Indel Money will raise Rs 800-1,000 crore through a combination of debt and equity, it said in a release.
On the debt portion, it plans to issue bonds, securitisation of its loan book and borrow from banks and other financial institutions.
The south India-based non-banking finance company (NBFC) said the funds will be utilised for both lending and expansion activities.
It plans to raise Rs 500 crore through public issuance of non-convertible debentures. Another Rs 150-200 crore is planned to be raised by securitising the loan book through the issuance of various debt instruments like market-linked debentures, pass-through certificates (PTCs) and direct assignments.
Also, Rs 100-150 crore will be raised through credit from public sector banks, NBFCs and other financial institutions, it said.
The NCDs have been rated CRISIL BBB/Stable and the first tranche of Rs 150 crore will hit the market in September this year, Indel Money said.
The gold loan NBFC expects 55 per cent year-on-year growth in its asset under management (AUM) in FY22 on the back of burgeoning demand.
The gold loan business has increased by 52 per cent year-on-year in FY21 to Rs 513 crore, it said.
Indel Money has 191 physical branches across Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana and has plans to take the branch tally to 400 by FY24, it said.
The company said it also has plans to open 50 branches in Odisha and Maharashtra in the last quarter of this fiscal, and 45 branches in Gujarat and West Bengal in the first quarter of the next fiscal year.
Gold loan business is witnessing robust demand and disbursal growth because of the prevailing economic scenario and easy eligibility criteria, said Umesh Mohanan, Executive Director and CEO, Indel Money.
"Raising debt and equity will help the company meet the growing demand and funding requirements to chart out a faster growth trajectory by expanding into new geographies. The funding will build a strong foundation for stable growth for us," he added.
