TruCap Finance Faces Severe Credit Crunch as Ratings Plummet to 'Default' Grade
TruCap Finance Limited, an NBFC, has been downgraded to default levels by major credit rating agencies after failing to meet debt obligations. CARE Ratings downgraded its long-term bank facilities and non-convertible debentures, while Infomerics lowered ratings on bank facilities. The company defaulted on ₹72.28 crore interest and principal payments due July 16. Factors contributing to the crisis include non-receipt of committed funds from new promoter, premature redemption demands, and severe liquidity pressure. TruCap's financial performance has declined, with a shift from profit to significant loss and increased gross NPAs. The company's liquidity is strained with debt repayments of ₹103.00 crore due against ₹57.00 crore in cash equivalents.
27Feb 25
Trucap Finance Divests Gold Loan Business to Incred Financial Services for ₹330 Crore
Trucap Finance has announced the sale of its entire gold loan business to Incred Financial Services for approximately ₹330 crore (₹3.3 billion). This strategic move could reshape the gold loan segment's competitive landscape. The deal suggests Trucap may be streamlining operations to focus on core business areas or strengthen its balance sheet, while Incred gains an opportunity to expand its presence in the gold loan market. The transaction could signal shifting priorities in the NBFC sector as companies realign portfolios to adapt to market conditions.
25Feb 25
Trucap Finance to Sell Gold Loan Business to InCred for ₹330 Crore
Trucap Finance Limited has signed a binding term sheet with InCred Financial Services Limited to sell its entire gold loan business for approximately ₹330 crore. The deal, structured as a slump sale, includes assets, liabilities, and trademarks related to 'Dhanvarsha'. Expected to close by April 2025, this move will significantly reduce Trucap's debt, enhance net worth, improve balance sheet leverage to below 1.5x, and optimize cost structure by over 70%. Post-sale, Trucap will focus on green energy finance and MSME business loans, with a combined AUM exceeding ₹450 crore as of December 31, 2024.