InCred Holdings files confidential IPO papers with Sebi: eyes Rs 3,000-4,000 cr via issue

InCred Holdings, an arm of NBFC InCred Financial Services, has filed preliminary papers with markets regulator Sebi through the confidential pre-filing route, and people familiar with the matter pegged the proposed issue size at Rs 3,000-Rs 4,000 crore.

In a public announcement on Sunday, the company said it has submitted ''the pre-filed draft red herring prospectus with Sebi and the stock exchanges in relation to the proposed initial public offering (IPO) of its equity shares on the main board''. The filing comes as the Bhupinder Singh-founded InCred Group looks to tap the capital markets on the back of a strong financial performance in FY25 and a well-diversified lending portfolio, spanning personal loans, student loans, specialised MSME loans, secured business loans, and loans to financial institutions.

Since its inception in 2016, InCred Financial Services (InCred Finance) has disbursed loans worth over Rs 25,000 crore, serving more than 4 lakh customers through a network of over 140 branches and a workforce of more than 2,600 employees.

Over the years, the company has built meaningful scale, with assets under management (AUM) rising 39 per cent year-on-year to Rs 12,585 crore in FY25.

Financially, InCred Finance reported a profit after tax of Rs 372 crore in FY25, up 18 per cent year-on-year, and its total income surged 50 per cent to Rs 1,255 crore.

Its key indicators reflected healthy fundamentals, including a capital adequacy ratio of 26 per cent and a Net NPA of just 0.7 per cent.

The company has opted for the confidential pre-filing route, which allows it to withhold public disclosure of IPO details under the draft red herring prospectus (DRHP) until later stages. This route is gaining traction among Indian firms aiming for flexibility in their IPO plans.

On Saturday, SaaS-based enrolment automation solution NoPaperForms filed draft papers through the confidential route.

In recent months, logistics service provider Shadowfax Technologies, commerce enablement platform Shiprocket, Tata Capital, edtech unicorn PhysicsWallah, and Imagine Marketing, the parent company of wearables brand boAt and stock broking platform Groww, also chose confidential filings.

In 2024, food delivery giant Swiggy and retail chain Vishal Mega Mart floated their IPOs following similar filings.

Market experts note that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly.