InCred Holdings has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEB) to launch its initial public offering. The proposed offer comprises a fresh issue of equity shares worth up to Rs 1,250 crore and an offer for sale of up to 99,020,833 equity shares.

The net proceeds from the fresh issue will be used mainly to invest in InCred Finance to augment its capital base, strengthen Tier-I capital, support onward lending and improve its capital adequacy ratio. InCred Holdings operates primarily through its material subsidiary, InCred Financial Services (InCred Finance). The group generates nearly all of its revenue through InCred Finance.

The offer for sale includes shareholders such as KKR India Financial Investments, MNI Ventures, MEMG Family Office LLP and V’Ocean Investments. The bankers to the issue are IIFL Capital Services, InCred Capital Wealth Portfolio Managers, Kotak Mahindra Capital Company, Nomura Financial Advisory and Securities (India), and UBS Securities India.

For the nine months ending on December 31, 2025, AUM rose to Rs 14,447.86 crore, with PAT of Rs 290.14 crore. Disbursements for the nine months ended December 31, 2025 stood at Rs 6,683.28 crore. Portfolio yields were 18.39 per cent, while the average cost of total borrowings was 10.05 per cent. Between FY23 and FY25, AUM and PAT grew at a CAGR of 44.04 per cent and 84.97 per cent, respectively.

The company’s lending book is spread across five verticals. Personal loans accounted for 55.56 per cent of AUM at Rs 8,027.12 crore as of December 31, 2025. Student loans made up 22.15 per cent at Rs 3,200.51 crore, followed by secured business loans adding 8.74 per cent of AUM, MSME loans adding 7.38 per cent of AUM and loans to financial institutional added 5.55 per cent to AUM.

InCred Finance said its lending model is built around a risk-first approach supported by an AI-enabled, in-house proprietary technology platform. For the year ended March 31, 2025, it reported a credit cost of 1.74 per cent, the second lowest among its diversified peers. Collection efficiency stood at 98.3 per cent, supported by a 327-member collections team across 38 locations.

InCred Finance has 158 branches across 152 cities in 19 states and Union territories, with reach across more than 17,000 pin codes. Its tech team grew from 114 to 152 professionals between March 31, 2023 and December 31, 2025, while the InCred app had over 4.5 lakh users as of December 31, 2025.

InCred's lender base spans 51 institutions, including public and private sector banks, mutual funds, financial and development financial institutions, and small finance banks. Its capital adequacy ratio stood at 24.97 per cent, above the regulatory requirement of 15 per cent, and it was rated AA-/Stable by CRISIL Ratings and ICRA for the nine months ended December 31, 2025.