InCred Holdings has moved a step closer to the public markets, submitting a draft prospectus for an initial public offering with India’s securities regulator. The Mumbai-based holding company for non-banking lender InCred Financial Services said the filing was made on Sunday through the confidential pre-filing route. The prospective float follows several years of rapid expansion across retail and small-business lending segments in India.
IPO Plan and Filing Route
The company confirmed it has pre-filed a draft red herring prospectus with the Securities and Exchange Board of India and the stock exchanges for a proposed main-board listing. People familiar with the matter have indicated an expected issue size in the range of $339 million to $452 million, although final terms remain subject to regulatory review and market conditions. The confidential mechanism allows issuers to refine disclosures and timing while keeping detailed IPO parameters out of the public domain until later stages.
Business and Lending Footprint
InCred operates across a diversified suite of products, covering personal loans, student loans, specialized MSME loans, secured business loans, and financing to financial institutions. Since launching in 2016, its lending arm has disbursed more than $2.83 billion to over four lakh customers, supported by a network of more than 140 branches. The platform employs more than 2,600 people, combining physical distribution with data-led underwriting to scale originations.
Growth and Scale Metrics
The lender reported meaningful balance-sheet expansion in the last fiscal year, with assets under management climbing 39 percent year on year to $1.42 billion in FY25. Disbursement momentum has been underpinned by demand for unsecured retail credit, education finance, and secured business products across tier-one and emerging urban markets. Management has consistently highlighted product diversification and risk-calibrated growth as pillars of its operating model.
Financial Performance
For FY25, InCred Financial Services posted a profit after tax of $42 million, an 18 percent increase versus the prior year. Total income rose 50 percent to $142 million, reflecting both portfolio growth and stable asset quality. Operating leverage from scale, along with disciplined cost control, contributed to improved profitability metrics across the franchise.
Capital and Asset Quality
Core prudential indicators remained robust, with a capital adequacy ratio of 26 percent at the end of FY25. The lender reported a net non-performing assets ratio of 0.7 percent, indicating contained credit costs through the period. Management attributes the performance to conservative underwriting, granular exposures, and early-warning analytics embedded in collections.
Strategic Rationale and Market Context
Tapping public markets would broaden InCred’s access to capital, supporting future growth across core lending verticals and strengthening the balance sheet. India’s credit cycle has been favorable, with NBFCs benefiting from strong consumption, formalization, and digitization trends that expand addressable demand. Listing proceeds, once finalized, are expected to back capital needs for loan book expansion and potential investments in technology and distribution.
Governance and Structure
InCred Holdings sits atop the group’s operating NBFC, providing corporate oversight and strategic direction for the lending businesses. The listing of the holding entity would give public investors direct exposure to the group’s diversified credit platform. The structure is intended to streamline capital allocation across products while maintaining regulatory compliance and risk discipline.
Next Steps in the Process
Following SEBI engagement, the company would publish a full draft red herring prospectus with detailed financial and risk disclosures. Book-building timelines, price bands, and allocation parameters will be determined closer to launch, subject to market windows. Lead managers and other intermediaries are expected to coordinate investor education ahead of pricing.
By opting for a confidential pre-filing, InCred has preserved flexibility on timing while signaling confidence in its growth trajectory and balance-sheet strength. The combination of rising AUM, expanding profitability, and healthy asset quality gives the proposed offering a compelling operational backdrop. Final IPO specifics will depend on regulatory feedback and market conditions, but the company’s latest numbers position it well for a public debut.