KKR-backed InCred Holdings files UDRHP with Sebi for IPO; plans ₹1,250 crore fresh issue

InCred Holdings, the holding company of diversified NBFC InCred Financial Services Limited (InCred Finance), has filed its updated draft red herring prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (Sebi) to raise funds through an initial public offering (IPO). The company had confidentially filed its IPO papers in November last year and received approval in February 2026 to proceed with the public issue.

The proposed public issue comprises a fresh issue of equity shares worth up to ₹1,250 crore and an offer for sale (OFS) of up to 9.90 crore equity shares by existing shareholders, including KKR India Financial Investments, MNI Ventures, MEMG Family Office LLP, and V’Ocean Investments, among others.

The company plans to utilise the net proceeds from the fresh issue primarily for investment in its wholly owned subsidiary, InCred Finance, to strengthen its tier-I capital base, support onward lending activities, and improve capital adequacy.

Promoted by Bhupinder Singh, InCred Finance is a retail-focused, diversified middle-layer non-banking financial company (NBFC) registered with the Reserve Bank of India. The lender offers products across five verticals including personal loans, student loans, secured business loans, specialised MSME loans, and lending to financial institutions.

As of December 31, 2025, the company’s assets under management (AUM) stood at ₹14,447.86 crore. Personal loans formed the largest share of the portfolio at 55.6%, followed by student loans at 22.2%, secured business loans at 8.7%, specialised MSME loans at 7.8%, and loans to financial institutions at 5.5%.

According to the DRHP, InCred Finance reported an AUM of ₹12,585 crore as of March 31, 2025, while profit after tax (PAT) stood at ₹373 crore with return on assets (ROA) of 3.45%. Between FY23 and FY25, the company’s AUM and PAT grew at a CAGR of 44% and 85%, respectively.

For the nine months ended December 31, 2025, the company posted PAT of ₹290 crore, while disbursements stood at ₹6,683 crore. Operational metrics remained stable with portfolio yields at 18.39% and average borrowing cost at 10.05%.

InCred Finance has built a multi-channel distribution network with 158 branches across 152 cities in 19 states and union territories, covering more than 17,000 pin codes. Its digital lending platform, the “InCred” app, had over 4.5 lakh users as of December 2025. The NBFC is rated “AA-/Stable” by both CRISIL Ratings and ICRA.

The company’s lender base includes 51 institutions comprising public and private sector banks, mutual funds, financial institutions, development finance institutions, and small finance banks. Its capital adequacy ratio stood at 24.97% as of December 2025, significantly above the regulatory requirement of 15%.

IIFL Capital Services, InCred Capital Wealth Portfolio Managers, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and UBS Securities India are the book-running lead managers to the issue.