InCred Holdings has submitted a draft red herring prospectus () with the Securities and Exchange Board of India (SEBI) via pre-filing route, PTI reported citing sources.
In a separate announcement on November 9, the company also said that it has submitted the pre-filed DHRP with and the stock exchanges for a proposed initial public offering (IPO) of its equity shares on the main board.
The PTI report added that its sources have pegged the proposed of InCred Holding’s IPO at ₹3,000-4,000 crore, it added. InCred is a subsidiary of NBFC InCred Financial Services.
What does prefiling route for IPO mean?
InCred Holdings has chosen to go for IPO approval via the “confidential” pre-filing route. This means that the company is allowed to withhold public disclosure of under the draft red herring prospectus (DRHP) until later stages.
The pre-filing route is gaining popularity among Indian firms increasingly, as they aim for flexibility in their IPO plans. On November 8, SaaS-based enrolment automation solution NoPaperForms filed DHRP via the same route.
And over the past few months, others who have opted for confidential filings include commerce enablement platform Shiprocket, edtech unicorn PhysicsWallah, logistics service provider Shadowfax Technologies, Imagine Marketing, the parent company of wearables brand boAt, stock broking platform Groww, and Tata Capita.
Last year, food delivery giant Swiggy and retail chain Vishal Mega Mart also floated their IPOs following similar filings, it added.
Market experts told PTI that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly.
InCred Holdings files for IPO: What we know
- The filing comes as the Bhupinder Singh-founded InCred Group looks to tap the capital markets on the back of a strong financial performance in FY25 and a well-diversified portfolio, spanning personal loans, student loans, specialised MSME loans, secured business loans, and loans to financial institutions.
- Since its inception in 2016, InCred Financial Services (InCred Finance) has disbursed worth over ₹25,000 crore, serving more than 4 lakh customers through a network of over 140 branches and a workforce of more than 2,600 employees.
- Over the years, the company has built meaningful scale, with assets under management (AUM) rising 39 per cent year-on-year to ₹12,585 crore in FY25.
- Financially, InCred Finance reported a profit after tax of ₹372 crore in FY25, up 18 per cent year-on-year, and its total income surged 50 per cent to ₹1,255 crore.
- Its key indicators reflected healthy fundamentals, including a capital adequacy ratio of 26 per cent and a Net of just 0.7 per cent.
(With inputs from PTI)