₹950 Cr Catalyst—Will Khandelwal Finance Spark Ind-Swift’s Next Big Chapter?

Ind-Swift Laboratories Ltd has taken a significant financial decision, approving an investment of up to ₹950 million in Optionally Convertible Redeemable Preference Shares of company Khandelwal Finance Ltd. The decision reflects Ind-Swift's intention to diversify its financial portfolio and forge strategic partnerships in the NBFC space.

 

Key Highlights:

 

Structure of Investment: The ₹950 million investment is to be invested in OCRPS, which will give Ind-Swift fixed returns and equity appreciation in Khandelwal Finance.
 

Strategic Alignment: Khandelwal Finance, a growing NBFC, would most likely utilize the capital to increase its book of loans, which would be mainly in SME and retail finance segments.
 

Board Approval: The investment was approved at Ind-Swift's recent board meeting in line with its overall strategy to utilize excess capital to invest in high-returning opportunities.
 

Risk-Adjusted Returns: OCRPS provide a hybrid product—paying regular dividends and the potential for conversion to equity, based on performance and market conditions.

Prospects:

 

This move is an indication of Ind-Swift's faith in the Indian financial services industry, and more specifically in NBFC growth story. Given that Khandelwal Finance has scope for growth, the investment can provide stable returns and strategic advantage. This is viewed by analysts as a prudent diversification beyond pharma, which will contribute shareholder value in the medium term.

 

Source: Trendlyne, Moneycontrol, Ind-Swift Exchange Filings