InCred Holdings files IPO papers with SEBI; reports fastest PAT growth among diversified NBFC peers

InCred Holdings Ltd is gearing up to go public, having filed its Updated Draft Red Herring Prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) for an IPO.

It will comprise a fresh issue of equity shares aggregating up to ₹1,250 crore and an offer for sale of up to 9.9 crore equity shares.

The company operates primarily through its subsidiary, InCred Finance, a retail-focused, diversified middle-layer non-banking financial company registered with the Reserve Bank of India.

InCred Finance was the fastest-growing diversified NBFC in India in terms of profit after tax (PAT) CAGR and the second-fastest in assets under management (AUM) CAGR between FY23 and FY25 among diversified peers, per CRISIL.

Promoted by Bhupinder Singh in 2017, the company offers lending products across five verticals.

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As of December 31, 2025, personal loans accounted for 55.56% of AUM at ₹8,027.12 crore, followed by student loans at 22.15% or ₹3,200.51 crore.

Secured business loans, including loan against property and school financing, contributed 8.74% or ₹1,262.64 crore, while specialised MSME loans contributed 7.83% or ₹1,131.14 crore.

Loans to financial institutions accounted for 5.55% or ₹801.40 crore.

The company reported AUM of ₹12,585.07 crore as of March 31, 2025, with PAT of ₹373.15 crore and return on assets (ROA) of 3.45%. Between FY23 and FY25, AUM and PAT grew at a CAGR of 44.04% and 84.97%, respectively.

As of December 31, 2025, AUM stood at ₹14,447.86 Crores, while PAT for the nine-month period was ₹290.14 crore. Disbursements during the nine months ended December 31, 2025 were ₹6,683.28 crore. Portfolio yield for the period stood at 18.39%, while the average cost of total borrowings was 10.05%.

The company said its lending model is based on a risk-first approach supported by an AI-enabled proprietary technology platform. It reported a credit cost of 1.74% for the year ended March 31, 2025, the second lowest among diversified peers, according to the filing.

Gross stage 3 loans stood at 2.28% as of December 31, 2025, compared with 2.05% a year earlier. Net stage 3 loans were 0.87% as of December 31, 2025, compared with 0.79% as of December 31, 2024. Collection efficiency stood at 98.30%, supported by a 327-member collections team operating across 38 locations.

The company said it operates through 158 branches across 152 cities in 19 states and union territories, covering more than 17,000 pin codes. Its technology team increased from 114 professionals as of March 31, 2023 to 152 professionals as of December 31, 2025.

The offer for sale includes participation from shareholders including KKR India Financial Investments Pte. Ltd., MNI Ventures, MEMG Family Office LLP and V’Ocean Investments Ltd.

The company said proceeds from the fresh issue will primarily be invested in its wholly owned subsidiary, InCred Finance, to strengthen Tier-I capital, support onward lending and improve CRAR.