Upcoming IPO: InCred Holdings files updated draft papers with SEBI for IPO

Upcoming IPO: InCred Holdings Ltd, primarily operating through its material subsidiary InCred Financial Services Ltd, has filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI), moving a step closer to its proposed initial public offering (IPO).

The offer consists of a new issuance of equity shares totalling up to ₹1,250 crores, along with an offer for sale (OFS) of up to 99,020,833 equity shares. This OFS involves various shareholders, including KKR India Financial Investments Pte. Ltd., MNI Ventures, MEMG Family Office LLP, and V’Ocean Investments Ltd., among others.

The company intends to use the net proceeds primarily to invest in its wholly owned subsidiary, InCred Finance, to enhance its capital base. The funds will be allocated to bolster Tier-I capital, facilitate further lending, and improve the subsidiary’s CRAR.

IIFL Capital Services Ltd, InCred Capital Wealth Portfolio Managers Private Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Private Ltd, and UBS Securities India Private Limited are the financial advisors for this offering.

Company details

InCred Holdings Limited derives nearly all of its revenue from its material subsidiary, InCred Financial Services Limited, a retail-focused, diversified, middle-layer non-banking financial company registered with the Reserve Bank of India.

InCred Finance offers a wide range of loan products catering to diverse customer segments, backed by a risk-focused approach, a technology-driven platform, a multi-channel distribution network, and an experienced management team.

The company’s lending portfolio is diversified across five key verticals. Personal loans remain the largest segment, contributing 55.56% of assets under management (AUM) at ₹8,027.12 crore as of 31 December 2025. This was followed by student loans at 22.15% ( ₹3,200.51 crore), secured business loans—including loan against property and school financing—at 8.74% ( ₹1,262.64 crore), specialised MSME loans at 7.83% ( ₹1,131.14 crore), and loans to financial institutions at 5.55% ( ₹801.40 crore).

As of 31 March 2025, the company’s total AUM stood at ₹12,585.07 crore, while profit after tax (PAT) was ₹373.15 crore, with a return on assets (ROA) of 3.45%.

Between FY23 and FY25, InCred Finance reported a strong growth trajectory, with AUM and PAT growing at a CAGR of 44.04% and 84.97%, respectively. This positions the company as the fastest-growing diversified NBFC in terms of PAT CAGR and the second fastest-growing player in AUM CAGR among diversified peers.

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