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Indel Money in talks with PE players to divest 15 percent for Rs 140 crore

Indel Money, a South India-based non-banking finance company (NBFC), is in talks with private equity players to divest 10-15 percent of its equity for Rs 140 crore.

With the divestment, the company aims to lay out a faster growth trajectory by entering new markets in FY22 and going for an eventual public listing.

Umesh Mohanan, executive director and CEO, Indel Money said, “We are in active discussions with a number of PEs from the US and Singapore to raise capital. We can divest 10-15 percent of our equity to a good investor, for around Rs 140 crore, depending on the quantum of dilution, and a valuation north of Rs 400 crore. We hope to finalise the investor by December.”

Indel Money presently has 191 branches majorly in Kerala, Tamil Nadu and Karnataka, and will open almost 100 more branches in Maharashtra, Telangana and Andhra this fiscal, aiming to increase the number of branches to over 400 by FY23.

“Indel closed FY21 with a live gold loan AUM (asset under management) of Rs 580 crore, up from Rs 336 crore in FY20 and is targeting Rs 850 crore AUM in the worst-case scenario and Rs1,000 crore in the best scenario this fiscal and to top Rs 1,300 crore by FY23,” said Mr Mohanan.

Diversified Indel Corporation with over Rs 1,000 crore revenue made a foray into gold loans in 2013, offering one-year gold loan and first ever long-term gold loan with two-year tenure.

The organised gold loan market is projected to clock Rs 4.6 lakh crore this fiscal.

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