Ernakulam (Kerala)-based Indel Money Ltd (IML) plans to induct a private equity investor in FY25, grow its assets under management (AUM) to ₹5,000 crore by FY26 and launch an initial public offer (IPO) in FY27.
The non-banking finance company’s assets under management (AUM) grew from ₹648 crore as at March-end 2023 to ₹1,450 crore as at December-end 2023, according to Umesh Mohanan, ED and CEO.
The company is predominantly into gold loans, lending money against the pledge of household gold jewellery. Almost 90 per cent of its portfolio comprises gold loans, with the balance comprising home loans and loans against property, MSME loans and others. In the run-up to the IPO, IML is planning to induct a private equity (PE) investor by offering about a 10 per cent stake. PE investment will set a valuation benchmark for the company, Mohanan said.
Also in the works is a $100 million external commercial borrowing programme in FY25, he added. Indel Corporation Pvt Ltd holds 100 per cent of IML’s issued, subscribed and paid-up capital. Mohanan said 60 per cent of IML’s AUM is direct lending and the balance is in the form of co-lending and direct assignment.
As on September 30, 2023, IML had 250 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Odisha, Maharashtra and Telangana and the union territory of Puducherry. The company intends to widen its geographic footprint by Fiscal 2025 to over to over 425 branches across 12 Indian states, expanding to eastern and northern states in India.