NewsCorporate ActionsIndel Money Announces Rs 300 Crore NCD Issue; Pramerica Life Expands Distribution via Equitas SFB PartnershipIndel Money Announces Rs 300 Crore NCD Issue; Pramerica Life Expands Distribution via Equitas SFB Partnership
Indel Money announces its sixth public issue of Secured Non-Convertible Debentures (NCDs) to raise up to Rs 300 crore, with the issue opening on October 13 and closing on October 28. The funds will primarily be used for onward lending, financing, and debt repayment. Separately, Pramerica Life Insurance forms a bancassurance partnership with Equitas Small Finance Bank, leveraging the bank's network of nearly 1,000 outlets to offer various life insurance products.
*this image is generated using AI for illustrative purposes only.
In a significant move for the financial sector, gold loan financier Indel Money has announced its sixth public issue of Secured Non-Convertible Debentures (NCDs), aiming to raise up to Rs 300 crore. Concurrently, Pramerica Life Insurance has forged a strategic bancassurance partnership with Equitas Small Finance Bank, marking a notable development in the insurance distribution landscape.
Indel Money's NCD Issue: Key Details
Indel Money's latest NCD issue is structured to support its business growth initiatives. Here are the crucial details of the offering:
| Aspect | Details |
|---|---|
| Issue Opening | October 13 |
| Issue Closing | October 28 |
| Face Value per NCD | Rs 1,000 |
| Base Issue Size | Rs 150.00 crore |
| Green Shoe Option | Rs 150.00 crore |
| Total Issue Size | Up to Rs 300.00 crore |
Fund Utilization
The company has outlined a clear strategy for utilizing the funds raised through this NCD issue:
- At least 75% of the funds will be allocated for onward lending, financing, and debt repayment.
- Up to 25% will be directed towards general corporate purposes.
This allocation demonstrates Indel Money's focus on expanding its core lending operations while maintaining flexibility for other business needs.
Pramerica Life Insurance's Strategic Partnership
In a separate development, Pramerica Life Insurance has entered into a bancassurance partnership with Equitas Small Finance Bank. This collaboration aims to expand Pramerica's distribution network significantly.
Partnership Highlights:
- Extensive Network: The partnership will leverage Equitas Small Finance Bank's network of nearly 1,000 outlets and 375 ATMs.
- Product Offerings: Pramerica will offer a range of life insurance solutions through this channel, including:
- Life insurance plans
- Savings plans
- Health-focused insurance products
- Unit-Linked Insurance Plans (ULIPs)
- Phased Implementation: The partnership will be rolled out in phases.
- Market Expansion: The collaboration will extend to microfinance and loan protection segments, indicating a comprehensive approach to market penetration.
This strategic alliance between Pramerica Life Insurance and Equitas Small Finance Bank represents a significant step in enhancing insurance accessibility across various customer segments. By combining Pramerica's diverse insurance portfolio with Equitas' extensive banking network, the partnership aims to address the growing demand for insurance products in India's evolving financial landscape.
The dual announcements from Indel Money and Pramerica Life Insurance underscore the dynamic nature of India's financial sector, with companies actively seeking growth opportunities through capital raising and strategic partnerships. These developments are likely to contribute to the broader goal of financial inclusion and service diversification in the country's banking and insurance sectors.
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