InCred Holdings is preparing to raise up to ₹1,250 crore through a fresh issue of equity shares, with proceeds primarily directed toward strengthening its lending subsidiary. According to the Updated Draft Red Herring Prospectus (DRHP), the company plans to use the fresh issue funds to augment the capital base of InCred Financial Services Limited (IFSL), its wholly owned material subsidiary. The IPO also includes an Offer for Sale (OFS) component where up to 9,90,20,833 equity shares will be sold by existing shareholders, though the company will not receive any proceeds from this portion. The IPO opens for subscription on May 21, 2026 and closes on the same date, with a price band of ₹1,296.13 to ₹1,893.77 per share.
During the nine months ended December 31, 2025, InCred Holdings reported robust financial metrics with profit after tax of ₹373.15 crore and total revenue of ₹1,893.77 crore. The company's Assets Under Management (AUM) grew to ₹14,448 crore, representing a growth of 25.73%. Key operational metrics include a Net Interest Margin (NIM) of 9.85% and Return on Equity (ROE) of 10.38%. The company maintains strong credit ratings with CRISIL AA-/Stable and ICRA AA-/Stable. IFSL's subsidiary performance shows even stronger metrics with ROA of 3.45% and CRAR ratio of 25.73%, well above the statutory requirement of 15%.
InCred Holdings operates as a diversified Non-Banking Financial Company (NBFC) through its subsidiary InCred Financial Services (IFSL), which contributes the majority of group revenue. The company operates 158 branches across 19 states and union territories as of December 31, 2025. Personal loans form the largest segment at 55.3% of AUM, while student loans account for 22.2%, secured business loans 8.7%, and MSME loans 7.8%. The company was ranked as the fastest-growing diversified NBFC in terms of PAT CAGR between FY23-FY25 and second fastest-growing based on AUM growth during the same period. IFSL's product portfolio includes Personal Loans, Student Loans, Secured Business Loans (LAP), Specialized MSME Loans, and Lending to Financial Institutions, with a focus on under-served segments with small ticket sizes.
The company has identified several operational and portfolio-related risks in its DRHP. IFSL contributes 99.5% of total revenue from operations for the nine-month period ended December 31, 2025, making the subsidiary's performance critical to overall business performance. The company reported negative operating cash flows of ₹2,815.75 crore during the nine-month period, which may impact liquidity and funding capabilities. Additionally, the company maintains a high exposure to unsecured loans with over 50% of revenues coming from unsecured personal loans, which could affect asset quality and credit risk management. Gross NPAs stand at 2.08%, though largely provided for, with net NPAs at just 0.73%. The company also faces compliance risks and regulatory changes, with recent RBI framework on scale-based regulation for NBFCs yet to be fully understood.
The major shareholders include B Singh Holdings Limited with 15.84% pre-offer stake, KKR India Financial Investments holding 12.98%, and MNI Ventures with 8.60%. Other significant institutional investors include NAAB Securities Pte Ltd (3.85%), V'Ocean Investments Ltd (2.89%), and Zerodha Broking Limited (1.44%). The company's diversified shareholder base includes multiple institutional and private investors, providing stability across different investment categories. In the OFS component, major participants include KKR India selling 4.00 crore shares, MNI Ventures selling 1.98 crore shares, and MEMG Family Office selling 1.02 crore shares.
