InCred Holdings Takes First Step Towards Major Public Offering
In a significant development in India's financial sector, InCred Holdings has officially submitted its draft red herring prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route. This move marks the beginning of the company's journey toward a substantial initial public offering that could reshape the financial services landscape.
The company made separate announcements confirming this strategic step on November 9, revealing that it has submitted the pre-filed DHRP with both SEBI and the stock exchanges. The proposed IPO will feature equity shares listed on the main board, signaling InCred's ambitions to join the ranks of established public companies.
Understanding the IPO Size and Company Background
According to sources familiar with the matter, the proposed IPO size is estimated between ₹3,000 and ₹4,000 crore, positioning it as one of the significant public offerings in the financial services sector. InCred Holdings operates as a subsidiary of NBFC InCred Financial Services, creating a robust financial ecosystem that has been gaining substantial market traction.
The confidential pre-filing route chosen by InCred Holdings represents a growing trend among Indian companies seeking flexibility in their public market debut plans. This approach allows companies to withhold public disclosure of IPO details under the draft red herring prospectus until later stages of the approval process.
The Rising Popularity of Confidential IPO Filings
The pre-filing route has been gaining remarkable popularity among Indian firms, with several notable companies opting for this approach in recent months. Just one day before InCred's filing, SaaS-based enrollment automation solution NoPaperForms also filed its DHRP through the same confidential route.
This trend extends across multiple sectors, with companies including commerce enablement platform Shiprocket, edtech unicorn PhysicsWallah, logistics service provider Shadowfax Technologies, and stock broking platform Groww all choosing confidential filings. Even established players like Tata Capital have embraced this approach for their IPO preparations.
Market experts emphasize that the confidential pre-filing route offers companies greater flexibility and reduces the pressure to go public quickly. This strategic advantage allows companies to time their market entry more effectively and respond to changing market conditions without the scrutiny that comes with public filings.
InCred's Financial Performance and Market Position
The IPO filing comes at a time when the Bhupinder Singh-founded InCred Group has demonstrated impressive financial performance in FY25, backed by a well-diversified lending portfolio. The company's business spans multiple segments including personal loans, student loans, specialized MSME loans, secured business loans, and loans to financial institutions.
Since its establishment in 2016, InCred Financial Services has achieved remarkable scale, having disbursed loans worth over ₹25,000 crore to more than 4 lakh customers. The company operates through an extensive network of over 140 branches and employs more than 2,600 professionals across its operations.
The company's growth trajectory is particularly evident in its assets under management (AUM), which surged 39 percent year-on-year to reach ₹12,585 crore in FY25. This substantial growth underscores the company's expanding market presence and operational efficiency.
Strong Financial Fundamentals Support IPO Ambitions
InCred Finance's financial metrics reveal a company in robust health, with profit after tax reaching ₹372 crore in FY25, representing an 18 percent year-on-year increase. The company's total income showed even more impressive growth, surging 50 percent to ₹1,255 crore during the same period.
The company's key performance indicators reflect strong fundamentals, including a capital adequacy ratio of 26 percent and remarkably low Net NPA of just 0.7 percent. These metrics demonstrate the company's prudent risk management practices and sustainable business model, which are likely to attract investor interest during the public offering.
As InCred Holdings progresses through the regulatory approval process, market watchers will be closely monitoring the company's next steps. The successful execution of this IPO could potentially open new avenues for growth and expansion, while also setting benchmarks for other financial services companies considering public listings in the evolving Indian market landscape.
