Sale26 Feb 2025, 01:57 am
TruCap Finance to Sell Gold Loan Business to Incred Finance for ₹330 Crores, Enhancing Capital Efficiency and Profitability
AI Summary
TruCap Finance Limited has announced signing of a binding term sheet with Incred Finance to sell its Gold loan business for a consideration of approximately ₹330 crores. This transaction is expected to significantly improve profitability in the focused products - secured Green Energy Finance and MSME business loans. Post-closing, TruCap’s balance sheet leverage is projected to go below 1.5x while its cost structure is anticipated to reduce by more than ~70%. TruCap has cumulatively disbursed more than ₹31,100 crores and served more than 1,00,000 borrowers across these product lines since 2018.
Key Highlights
- TruCap to sell its Gold loan business to Incred Finance for ₹330 crores
- Projected balance sheet leverage to go below 1.5x and cost structure to reduce by more than ~70%
- Enhancement in capital efficiency should significantly improve profitability
- Focus on Green Energy & MSME Business Financing
- TruCap has cumulatively disbursed more than ₹31,100 crores and served more than 1,00,000 borrowers since 2018