InCred Financial Services is planning to make a splash in the public market, aiming to raise somewhere between INR 4,000 – 5,000 crore with its initial public offering (IPO) by the third quarter of FY 2025.
Incred Financial Services: IPO Ambition
The fintech unicorn, which hit the billion-dollar valuation mark not long ago, has been on a serious growth spurt. In the fiscal year 2024, the company’s operating revenue jumped by 47%, hitting INR 1,270 crore, up from INR 864.6 crore the year before. Net profit also took a leap, soaring to INR 316.3 crore from INR 120.9 crore—a whopping 162% increase. Incred Finance’s assets under management (AUM) also grew by 52% to nearly INR 10,000 crore.
IPO Details and Stakeholder Plans
Incred Financial Services is looking at a valuation that can range from INR 15,000 – 22,500 crore (that’s roughly USD 1.78 billion to USD 2.6 billion). The IPO might include an offer for sale, which means existing shareholders could cash out some of their shares. Among those, KKR, with its 13.4% stake, is a key player. Bhupinder Singh, the big boss at InCred, mentioned that the IPO’s go-ahead depends on KKR’s willingness to sell its shares.
By January 2025, InCred plans to have its merchant bankers lined up—four banks to steer the IPO ship. This move signals their preparation to not just grow bigger but also to attract a wide array of investors.
This IPO comes at a time when India’s NBFC sector is under the RBI’s microscope for potential financial stress. For InCred, launching an IPO could mean expanding its capital to tackle any challenges and fund further growth.
But it’s not all about the IPO; the company is also looking at expanding its empire. Talks are on for a general insurance joint venture and setting up a mutual fund house. These steps show InCred’s ambition to diversify and dig into new revenue sources.
Looking Ahead
With strong financials, strategic expansions, and big-name investors in their corner, InCred Financial Services is set to become a major force in the fintech world. This IPO isn’t just about raising funds; it’s a strategic move to establish InCred as a formidable name in India’s financial services scene.
As they prepare for their public market debut, this IPO marks a crucial chapter in InCred’s story, aiming to leverage growth opportunities for long-term success. As many as 11 IPOs from the finance sector are listed in 2024 so far. Among them, Bajaj Housing Finance has delivered tremendous returns of over 135%. The average return on the listing day of the finance sector’s IPOs stands at 17.66%. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
