Incred Holdings Unlisted Share
Incred Holdings Limited
INE732W01014
Listing Status: DRHP Not Filed
(Earlier Incred finance - Primary issue min 1Crs.)
About Incred Holdings Unlisted Share
Overview of Incred Holdings Unlisted Share
Company Overview
InCred Group stands as a prominent figure in the financial services sector, encompassing Financing, Investment Banking, Wealth Management, Asset Management, and Institutional Equities. It operates through two main entities: InCred Holdings Limited, acting as the parent company, and its subsidiary, InCred Financial Services Limited, which directly engages with borrowers.
InCred Holdings Limited is the parent company, established in 2011 under the name KKR Capital Markets India Limited. Following the merger with KKR India Financial Services in July 2022, it was renamed InCred Holdings. It doesn't directly offer financial products. Instead, it serves as the financial backbone for its subsidiary, InCred Financial Services.
On the other hand, InCred Financial Services Ltd. operates as a non-banking financial company (NBFC), offering a diverse array of loan products catering to various credit requirements in emerging India, including personal loans, education loans, SME business loans, and merchant loans. Renowned for its utilization of technology and data science, InCred streamlines the loan application process, often approving loans online, aiming to offer a more efficient lending experience compared to traditional lenders.
Recently, Crisil and Care ratings have improved the credit rating of InCred to AA-/stable.
Business Entities
InCred operates through three main business entities, each catering to a specific financial service area:
- InCred Finance: offering personal loans, education loans, and SME business loans
- InCred Capital: This arm deals with wealth management, investment banking, and equities
- InCred Money: This entity focuses on retail bonds and alternative investments products
Management
Mr. Bhupinder Singh, Wholetime Director & CEO, Founder of the Incred Group
Prior to Incred:
- Co-headed the Investment Banking and Securities division of Deutsche Bank for the Asia Pacific region
- Head of the Corporate Finance division for Deutsche Bank in the Asia Pacific region
- Post Graduate Diploma in Management (PGDM) from IIM Ahmedabad
Mr. Vivek Bansal, Wholetime Director & CFO
Prior to Incred:
- Deputy Chief Financial Officer at Yes Bank
- He worked with Fidelity Investments in London and Standard Chartered in Mumbai
- Chartered Accountant and a CFA
Timeline
2016: Acquired NBFC License
2017: Raised INR 5.85 Billion
2018: Profitable in 1st year of its operations
2019: Raised INR 4.27 Billion
2020: Acquired Qbera, a fintech leading platform
2021: Partnerships with Amazon India & Flipkart to provide merchants loans
2022: Merger with KKR India & Partenered with food delivery apps to provide credit facilities
2023: Unicorn Status afer raising funds of INR 5 Billion
Product Mix
Merger with KKR
Incred Finance merged with KKR India Financial Services Ltd in 2021 in an all-stock deal. According to a joint statement by the companies, the merger created an NBFC with a $600-million (around ₹4,700-crore) balance sheet and an equity base of $300 million. Under the merger terms, KKR, along with two other investors, Teacher Retirement System of Texas, and Abu Dhabi Investment Authority, hold a 35% stake in the merged entity.
The transaction reaffirms the strength and quality of the retail lending platform built by InCred Finance, which has a sharp focus on strong risk-management and collections practices and incorporates innovative technology solutions to enhance operational efficiencies.
Fundraising
InCred has achieved a valuation exceeding 1 billion dollars following a successful funding round in November 2023, that raised 500 Cr.
The funding round was spearheaded by:
- Ranjan Pai of MEMG, contributed $9 million.
- Ravi Pillai, the chairman of RP Group of Companies, infused $5.4 million
- Ram Nayak, Head of Fixed Income & Currencies at Deutsche Bank, invested $1.2 million.
- Varanium Capital Advisors and Sattva Group
The company additionally stated that the equity capital would be strategically allocated across its primary business segments, encompassing consumer loans, student loans, and lending to micro, small, and medium enterprises (MSMEs).
Insights of Incred Holdings Unlisted Share
Financial Insights
(In Crs)
Particulars | 31st March, 2023 | 31st March, 2022 | Y-o-Y % increase |
Revenue | 880 | 524 | 68% |
EBITDA | 620 | 279 | 122% |
PBT | 191 | 42 | 354% |
PAT | 109 | 31 | 251% |
EPS | 1.85 | 0.8 |
- The increase in revenue highlights a rapidly expanding business with a growing demand for its products or services
- The surge in EBITDA indicates efficiency improvements and potentially expanding profit margins, suggesting that the company is scaling effectively
- The PAT is particularly noteworthy because it directly impacts reinvestment potential and signals strong net profitability
- The growth in EPS is an indicator of the company's increasing profitability on a per-share basis, making the stock more attractive
Incred Finance reported a total income (Net of Finance Cost) of ₹521 crore for FY23 and ₹838 crore for FY24.
Based on this growth, we project the total income for Incred Holdings to be approximately ₹1,390 crore for FY24. The company reported a PBT of ₹423 crore for FY24, which is a 204% increase from ₹207 crore in FY23. Assuming Incred Holdings will see a similar increase, we estimate their PBT will rise from ₹191 crore in FY23 to ₹390 crore in FY24.
For FY23, the PAT was reported to be ₹109 crore. Applying the same growth rate, we project the PAT for FY24 to be approximately ₹245 crore. Based on this PAT, we calculate the following:
- EPS: 4
- P/E: 37
- P/B: 3
The current net worth of the company is INR 3320 Crores.
Key Indicators
*As of FY24
Asset Under Management | INR 9039Cr |
GNPA | 2.1% |
NNPA | 0.8% |
DE Ratio | 1.5x |
Provision Coverage Ratio (PCR) | 53% |
Cost to Income Ratio | 44% |
Capital to Risk Asset Ratio (CRAR) | 30% |
Capital Adequacy Ratio (CAR) | 33.4% |
Collection Effeciency | 98% |
NIM | 10.1% |
- AUM at INR 9039 Cr indicates a substantial size of the portfolio
- GNPA & NNPA metrics are indicators of the quality of the loan book and the underlying risk. It shows that the company has made adequate provisions to cover potential losses, highlighting prudent risk management.
- PCR means that over half of the gross NPAs are covered by provisions, which is a healthy sign of asset quality and financial resilience
- Cost to Income Ratio indicates that the NBFC spends 44% of its income on operational costs. It's a reasonable figure that suggests the company is managing its expenses well relative to its income
- CRAR and CAR both these ratios are well above the regulatory requirements, indicating a strong capital position to absorb potential losses and support its growth
- Collection Efficiency at 98% suggests that the majority of borrowers are repaying their loans on time, which is crucial for the liquidity and profitability
Revenue split from subsidiaries
(In Crs)
Subsidiary | % of Shareholding | Revenue | PAT |
InCred Financial Services Limited | 100 | 877.5 | 121 |
InCred Prime Finance Limited | 59.37 | 2 | 0.02 |
*InCred Management and Technology Services Private Limited | 100 | 0.15 | -3.75 |
*Booth FintechPrivate Limited | 100 | 0 | -14.85 |
*InCred.AI Limited | 100 | 0 | 0 |
*mValu Technology Services Private Limited | 75.82 | 0.72 | -3 |
*Companies are a step down subsidiary of InCred financial services limited
Valuation
The company was recently valued at INR 8800 Crores during a fundraising event in November 2023, indicating strong investor confidence. This valuation pegs the company at 10 times its Revenue and 72 times its Profit After Tax (PAT), resulting in a price per share of INR 149.
As of FY24
Particulars | Industry Avg | InCred |
P/E Ratio | 20.67 | 39 |
P/S Ratio | 3.18 | 7 |
P/B Ratio | 2.09 | 3 |
Share Price journey
The shares debuted on the 21st of August, 2021, with an initial price of ₹71. In less than three years, they have exhibited a consistent upward trajectory, more than doubling in value. Presently, the shares are trading at ₹149. Over the past 52 weeks, they reached a high of ₹153 and a low of ₹109.
Financial Charts of Incred Holdings Unlisted Share
Balance Sheet of Incred Holdings Unlisted Share
Profit and Loss of Incred Holdings Unlisted Share
Ancillary of Incred Holdings Unlisted Share
Ratio Analysis
Peers
Industry Benchmarking
Segment Revenue
Subsidaries
Security Allotment
Corporate Governance
Team Management Details
FAQs of Incred Holdings Unlisted Share
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How to buy Incred Holdings Limited?
Below are three ways through which you can purchase Incred Holdings Limited:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to buy Incred Holdings Limited, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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How to sell Incred Holdings Limited?
Below are three ways through which you can sell Incred Holdings Limited:
- We at Altius Investech have many actively traded scripts and are market makers of unlisted shares. To check out all the unlisted shares traded. (Click on link). To submit a request to sell Incred Holdings Limited, please click on the trade button at the top of this page
- Additionally, you can download our app from your play store or app store, register on our application, and engage in active trading there.
Download the Altius App here https://onelink.to/hf4m72 - You can also reach out to us at : +91 8240614850 / +91 8240861716
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What is the price of Incred Holdings Limited?
We provide a two way quote on all the shares we deal in. Your buy price for Incred Holdings Limited is ₹151 and your sell price for Incred Holdings Limited is ₹135. The price is based on our estimates and market conditions.
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What is the lock-in period of Incred Holdings Limited?
The lock-in period for Incred Holdings Limited varies depending on the category of investors:
- For retail Investors, HNIs, or Body Corporates, the lock-in period is 6 months from the date of the listing of Incred Holdings Limited
- For Venture Capital Funds or Foreign Venture Capital Investors, there is a lock-in period of 6 months from the date of acquisition of Incred Holdings Limited
- For AIF-II (Alternative Investment Funds - Category II), there is no lock-in period
August 2021 saw the introduction of this regulation by SEBI. The purpose of the regulation change, which lowered the lock-in period from a year to six months, was to incentivize additional investments in firms getting ready for initial public offerings, or IPOs. Since its introduction, a number of Portfolio Management Services (PMS) have advised their clients to purchase Pre-IPO shares in order to take advantage of the advantages associated with early-stage investments. This reduction in the lock-in period is considered as a significant step forward.
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How is the Incred Holdings Limited price calculated?
Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of Incred Holdings Limited. The price is also determined from the most recent funding round for Incred Holdings Limited. This provides us with a benchmark valuation, offering a clear indication of the company's current market value as perceived by investors and industry experts.
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What are the lot sizes of Incred Holdings Limited?
We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of Incred Holdings Limited with us kindly click here.
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What are the financials of Incred Holdings Limited?
The financials of Incred Holdings Limited which includes the P/L of Incred Holdings Limited and the Balance Sheet of Incred Holdings Limited is in the financials section (Click on link).
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Where can I find the annual report of Incred Holdings Limited?
The annual report of Incred Holdings Limited is available in the annual report section (Click on link).
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Is buying Incred Holdings Limited legal in India?
Yes, buying and selling unlisted shares in India is indeed 100% legal. This activity is regulated and governed under the guidelines provided by the Securities and Exchange Board of India (SEBI). Investors and traders must adhere to these regulations and guidelines to ensure compliance with legal and financial standards. It's important for participants in the unlisted share market to be aware of and understand these regulations to engage in transactions legally and securely.
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Short-term Capital Gain taxes to be paid on Incred Holdings Limited?
When you sell unlisted shares within a period of two years from the date of acquisition, any profit earned from the sale is classified as Short-term Capital Gain (STCG). This gain is then added to your total income for that financial year. The tax on this short-term capital gain is calculated based on your applicable individual income tax slab rates. Therefore, the rate at which you will pay tax on the STCG from unlisted shares depends on your total income, including this gain, and the tax slab it falls under as per the prevailing income tax laws in India. It's important for investors to consider these tax implications when engaging in transactions involving unlisted shares.
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Long-term Capital Gain taxes to be paid on Incred Holdings Limited and how are They Taxed?
Long-term Capital Gains (LTCG) on unlisted shares in India refer to the profits earned from the sale of unlisted shares that have been held for more than two years. The key aspects of LTCG on unlisted shares include:
- Tax Rate: LTCG on unlisted shares is taxed at a rate of 20%.
- Indexation Benefit: This is a significant advantage for investors. Indexation allows for adjusting the purchase price of the shares for inflation, which can reduce the taxable gain.
- Importance for Investors: Understanding LTCG is crucial, especially for High Net-worth Individuals (HNIs) and retail investors, as it impacts their investment strategy and tax planning. Knowing these details helps in making informed investment decisions.
- Calculation: LTCG is calculated by subtracting the indexed cost of acquisition (the purchase price adjusted for inflation) from the sale price of the shares. The profit thus calculated is subject to a 20% tax.
- Applicability: LTCG tax is applicable to profits from the sale of unlisted shares held for more than two years.
- Relevance: This tax is particularly relevant to investors in the unlisted share market, including those considering selling their holdings after a period of more than two years.
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Applicability of Taxes on Incred Holdings Limited once it is listed?
When shares initially bought in the unlisted market become listed, the taxation rules change significantly if these shares are sold through a stock exchange. Here's what investors need to know:
Transition to Listed Market Tax Rates: Once unlisted shares are listed on the stock exchange and subsequently sold, the tax rates applicable to listed securities come into effect. This shift means that the favourable tax treatments for listed shares, as per the prevailing tax laws, will apply.
Taxation Based on Holding Period: The crucial factor in determining the type of capital gains tax (Long-term or Short-term) is the holding period of the shares. Importantly, this period is calculated from the original purchase date when the shares were unlisted.
Long-term vs. Short-term Capital Gains: If the shares are sold after being held for more than one year from the date of purchase (including the period when they were unlisted), they are subject to Long-term Capital Gains (LTCG) tax.
Conversely, if sold within one-year, Short-term Capital Gains (STCG) tax rates apply.
Significance for Investors: This information is vital for investors in the unlisted market, as it impacts their tax planning and decision-making process. Understanding these nuances ensures that investors can strategically plan the sale of their shares post-listing to optimize tax implications.
Advice for Investors: It's advisable for investors to keep a record of their purchase dates and monitor the listing dates closely. Additionally, staying updated with the latest tax regulations or consulting with a financial advisor is recommended for accurate tax calculations and compliance. -
How does Altius Investech source Incred Holdings Limited?
At Altius Investech, our approach to sourcing Boat Unlisted Share (Imagine Marketing) involves a strategic and direct method. Primarily, we acquire these shares from the below key groups:
Employees of the Company: Employee stock option plans (ESOPs) or other compensation packages frequently include shares for firm employees. For a various reasons, such as including portfolio diversification or financial considerations, some of these employees may eventually choose to sell their shares. We engage with these employees, providing them a platform to sell their shares.
Initial Investors: These are the angel or early-stage investors who provided capital to the business in its early stages. These original investors may look to sell all or part of their ownership position in the company as it develops and flourishes. This might be done for various reasons such as in order to maximise their investment, reallocate resources, or make other calculated financial decisions.
Funding rounds and VC funds: Altius Investech sources the shares from private placement rounds in which private companies seek to obtain capital from the market. Through our platform, venture capital funds can liquidate their shares and we receive the inventory from them when they decide to sell a portion of their ownership through block trades.
By establishing connections with these groups, Altius Investech guarantees our clients a steady and dependable supply of Boat Unlisted Share (Imagine Marketing). This process not only makes it easier for employees and initial investors in liquidating their assets, but it also gives our clients access to shares that aren't often found on the open market. Our platform effectively facilitates a win-win situation for both buyers and sellers. -
How to trust Altius Investech before buying Incred Holdings Limited from its platform?
Altius Investech stands at being India's fastest growing and leading marketplace for buying and selling unlisted shares. We believe in enabling access to alternative sources of investments at lower entry barriers to private equity investments.
With more than 25 years of experience, Altius Investech has carved a niche in the financial market by serving more than 8000 clients. The incredible journey is further highlighted by the vast number of transactions that Altius Investech has facilitated transactions that have already exceeded 300 crores.
For investors Altius Investech curates investment opportunities in companies at reasonable valuations which are on the verge of an IPO leading to massive value unlocking. Investments are backed by thorough research and sound investment thesis, with a time bound exit plan.
For ESOP Shareholder and existing Investors, we assist them to liquidate their shares even if they are not publicly traded by creating a platform where we find the right buyers and sellers for the best prices.
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We at Altius Investech are dedicated to upholding the greatest levels of ethics and transparency, making sure that your investment experience is not only profitable but also safe and reliable.
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