Can InCred Holdings emerge as one of the most closely watched NBFC IPOs in the coming months? From rapid loan book growth and expanding retail lending operations to backing from large institutional investors like KKR, the company is now preparing for its public market debut with plans to raise fresh capital for future expansion.
But beyond the growth numbers, investors are also closely examining the bigger picture – how dependent is the company on its lending subsidiary, how strong are its cash flows, and can it maintain growth amid rising competition in India’s fast-growing credit market?
Ahead of the opening of this upcoming IPO, let’s take a look at key details of the InCred Holdings IPO that every investor need to know –
InCred Holdings IPO: Objective of the issue
InCred Holdings is preparing to use a large part of its upcoming IPO proceeds to strengthen the business of its lending arm, according to the Updated Draft Red Herring Prospectus (DRHP) filed by the company.
As per the updated DRHP, the company plans to raise up to Rs 1,250 crore through a fresh issue of equity shares. The funds raised from this portion of the IPO are expected to be mainly directed towards InCred Financial Services Limited (IFSL), the company’s wholly owned material subsidiary.
According to the filing, the primary objective behind the fresh issue is to augment the capital base of IFSL.
The filing stated that the net proceeds from the fresh issue, after deducting offer-related expenses, will be invested in IFSL.
Apart from the fresh issue, the IPO also includes an Offer for Sale (OFS) component.
As per the updated DRHP, up to 9,90,20,833 equity shares will be sold by existing shareholders under the OFS route.
However, the company clarified that it will not receive any proceeds from this portion of the issue. The money raised through the OFS will go directly to the selling shareholders.
This means only the fresh issue component will contribute funds to the company and its subsidiary business operations.
InCred Holdings IPO: Business overview of the company
As per the updated DRHP filed by the company, InCred Holdings operates as a diversified Non-Banking Financial Company (NBFC) through its subsidiary InCred Financial Services (IFSL), which contributes the majority of the group’s revenue. The company’s core business is lending across segments such as personal loans, student loans, secured business loans and MSME financing.
Personal loans form the largest part of its portfolio, while student loans are mainly given to Indian students pursuing higher education overseas. The company also lends to small businesses, e-commerce vendors and other NBFCs. Apart from lending, the company also offers merchant banking and investment management services.
As of December 31, 2025, the company had 158 branches across 19 states and union territories.
InCred Holdings IPO: Major shareholders of the company
As per the Updated DRHP filed by the company, InCred Holdings is promoted by Bhupinder Singh and B Singh Holding.
The major shareholders of the company are:
| Key Shareholders | Pre-Offer Stake |
| B Singh Holdings Limited | 15.84% |
| KKR India Financial Investments | 12.98% |
| MNI Ventures | 8.60% |
| NAAB Securities Pte Ltd | 3.85% |
| V’Ocean Investments Ltd | 2.89% |
| Zerodha Broking Limited | 1.44% |
The Updated DRHP also showed that several institutional and private investors hold significant stakes in the company.
This include –
| Shareholder | Pre-Offer Stake |
| KKR India Financial Investments Pte. Ltd. | 12.98% |
| MNI Ventures | 8.60% |
| V’Ocean Investments Ltd | 2.89% |
| Moore Strategic Ventures, LLC | 1.88% |
| Elevar I-IV AIF | 1.56% |
| MEMG Family Office LLP | 1.51% |
| Zerodha Broking Limited | 1.44% |
InCred Holdings IPO: Market position
As per the updated DRHP filed by the company, InCred Holdings has positioned itself among the fast-growing diversified Non-Banking Financial Companies (NBFCs) in India.
The filing stated that the company was the fastest-growing diversified NBFC in terms of Profit After Tax (PAT) Compound Annual Growth Rate (CAGR) between FY23-FY25. It was also ranked as the second fastest-growing diversified NBFC based on Assets Under Management (AUM) growth during the same period.
The company operates across multiple retail lending segments, including personal loans, student loans and secured business loans.
According to the filing, these segments continue to see strong growth in India’s credit market. Apart from lending, InCred has also expanded into merchant banking and Alternative Investment Fund (AIF) businesses.
| Key Areas | Details |
| PAT Growth Ranking | Fastest-growing diversified NBFC (FY23-FY25) |
| AUM Growth Ranking | Second fastest-growing diversified NBFC |
| Core Segments | Personal loans, student loans, secured business loans |
| Credit Ratings | CRISIL AA-/Stable, ICRA AA-/Stable |
| Additional Businesses | Merchant banking, AIF management |
InCred Holdings IPO: Financial performance
As per the updated DRHP filed by the company, InCred Holdings during the nine months ended December 31, 2025 posted a profit after tax (PAT) of around Rs 290 crore during the period, while total income stood at nearly Rs 1,870 crore. The filing also showed that the company’s Assets Under Management (AUM) grew to around Rs 14,448 crore, a growth of nearly 26%
– Key financial metrics
The company continued to report growth in income and profitability during the period under review.
| Metric | Details |
| Total Income (9M FY26) | Rs 1,870 crore |
| Profit After Tax (PAT) | Rs 290 crore |
| Basic EPS | Rs 4.45 |
| Return on Equity (ROE) | 9.66% |
| Assets Under Management (AUM) | Rs 14,448 crore |
| AUM Growth | 25.92% |
– Lending and margin profile
According to the filing, InCred’s lending business continued to maintain healthy margins. Personal loans remain the largest segment in the company’s portfolio, while unsecured loans account for a significant share of the overall loan book.
| Operational Metric | Details |
| Net Interest Margin (NIM) | 10.02% |
| Average Borrowing Cost | 10.05% |
| Personal Loan Share in AUM | 55.56% |
| Unsecured Loan Share | 76.43% |
– Asset quality and capital position
The company reported relatively stable asset quality metrics as of December 31, 2025.
| Asset Quality Metric | Details |
| Gross NPA Ratio | 2.28% |
| Net NPA Ratio | 0.87% |
| Provision Coverage Ratio | 62.34% |
| Capital Adequacy Ratio (CRAR) | 24.97% |
Key risk indicators
The updated DRHP also highlighted certain operational and portfolio-related risks. Negative operating cash flows and higher exposure to unsecured lending remain key factors investors may track going forward.
| Risk Factor | Observation |
| Operating Cash Flow | Negative Rs 1,421 crore (9M FY26) |
| Loan Concentration | High exposure to personal loans |
| Credit Risk | Large unsecured loan portfolio |
InCred Holdings IPO: Key risks
Along with growth and expansion plans, InCred Holdings has also highlighted several important risks in its Updated Draft Red Herring Prospectus (DRHP).
The company stated, “Our material subsidiary, InCred Financial Services Limited (“IFSL”) significantly contributes towards our business and financial performance, contributing 99.85%, 99.92%, 99.91%, 99.72% and 99.78%, respectively, of our total revenue from operations for the nine month period ended December 31, 2025 and December 31, 2024, and years ended March 31, 2025, March 31, 2024 and March 31, 2023.”
The filing further added, “Any significant reduction in its contribution to our consolidated revenue from operations could have a material adverse impact on our business, results of operations, cash flows and financial condition.”
The company said, “Our company, subsidiaries, directors, promoter, KMPs and SMPs are or may be involved in certain legal and regulatory proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, financial condition, cash flows and results of operations.”
Another key risk flagged by the company relates to operating cash flows. The company stated, “We have witnessed negative net cash (used in) operating activities during the nine-month period ended December 31, 2025, and December 31, 2024, or years ended March 31, 2025, 2024 and 2023.”
It further added, “We may continue to witness negative cash flows (used in) operating activities going forward, which may impact our liquidity, ability to fund operations and growth, and could adversely affect our business, financial condition and results of operations.”
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing. This article provides information based on the company’s Updated Draft Red Herring Prospectus (DRHP) for educational purposes only and does not constitute an offer, solicitation, or recommendation to buy, sell, or hold any security. Investors should evaluate the key risk factors, including negative operating cash flows and unsecured lending exposure, and consult a SEBI-registered investment advisor before making any financial decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.