The fintech-based financial services company IBL Finance Limited will launch its Initial Public Offering (IPO) on January 09, 2024. The fixed price issue comprises only of a fresh issuance of 67.25 lakh shares worth ₹34.30 crore without any offer-for-sale component. The face value of the shares is ₹10 each and the price band is fixed at ₹51 per share. Investors can buy a minimum of 2,000 shares and in multiples thereof. IBL Finance Limited, the first SME IPO of 2024 will be listed on NSE’s small and medium enterprises segment on January 16, 2024.
About Company
IBL Finance Limited is a technology and data-science-driven financial services platform that was Incorporated in August 2017. The company utilises fintech to make lending more convenient with the entire digital process. To simplify the loan process and reduce turnaround time, IBL Finance developed data science-driven underwriting algorithms. It helps in data aggregation from a variety of sources and generates a credit report that includes more than 500 data points.
Some key features of IBL Finance Limited:
- Instant loan sanction that takes as little as 3 minutes to provide personal loans up to ₹50,000.
- Offers affordable interest rates and world-class customer service including quick query resolution, 24*7 availability, and more.
- Take loans without going anywhere and manage your loan account online.
Till March 31, 2023, with 81 full time employees, IBL Finance has sanctioned 1,63,282 personal loans with the sum of ₹7,105.44 lakhs. The company has over 5 lakh downloads on its personal loan app, along with 7 years of service with 8 branches across major cities in Gujarat and Maharashtra.
Manish Patel, Piyush Patel and Mansukhbhai Patel are the promoters of the company.
IPO details at a glance
Fedex Securities Pvt Ltd is the book running lead manager whereas Link Intime India Private Ltd is the registrar for the IBL Finance IPO.
| IPO Application Date | January 9 to 11, 2024 |
| Listing Date | January 16, 2024 |
| Listing On | NSE SME |
| IPO Issue Type | Fresh Issue on Fixed Price |
| Face Value | ₹10 per share |
| Price Range | ₹51 per share |
| Lot Size | 2000 Shares |
| Total number of issues | 67,25,000 shares aggregating up to ₹34.30 Crore |
| Holdings before issue | 1,81,80,650 Shares |
| Holdings after issue | 24,905,650 Shares |
| Net Public Issues | 67,25,000 shares |
| Retail Investor Quota | 50% of net offering |
| QIB Investor Quota | Both together 50% of net offering |
| NII Investor Quota |
The retail investors can bid only for 1 lot i.e., 2,000 shares whereas HNIs can bid for up to 2 lots. The investment per lot amounts to ₹2,04,000.
Important dates
The dates are mentioned as per the tentative schedule given in the IBL Finance Limited’s IPO RHP document.
| IPO opening date | January 9, 2024 (Tuesday) |
| IPO closing date | January 11, 2024 (Thursday) |
| UPI mandate confirmation cut-off time | 5 PM, January 11, 2024 (Thursday) |
| Finalization of allotment basis | January 12, 2024 (Friday) |
| Credit of Shares to Demat / Refunds / Unblocking of Funds | January 15, 2024 (Monday) |
| IPO Listing Date / Trading of Share | January 16, 2024 (Tuesday) |
Company’s financials
The IBL recorded a 307.59% growth in revenue and 351.28% rise in profit after tax (PAT) in the financial year ending in 2023 as compared to FY2022.
| Financial Period Ending in | 31 Mar’23 | 31 Mar’22 | 31 Mar’21 |
| Net Worth | 2,048.74 | 355.47 | 312.73 |
| Total Assets | 2,218.1 | 1,022.85 | 339.10 |
| Revenue from operations | 1,330.52 | 327.08 | 112.59 |
| EBITDA | 399.70 | 70.05 | -2.44 |
| EBITDA Margin | 30.04% | 21.42% | -2.17% |
| Profit After Tax (PAT) | 192.83 | 42.73 | -9.88 |
| PAT Margin | 14.49% | 13.06% | -8.88% |
| Cash flow from operations | 273.71 | 60.02 | -4.05 |
| Reserves & Surplus | 1,139.71 | 29.47 | -13.27 |
| Total Borrowing | 9.12 | 640.58 | – |
| Amount in ₹ Lakhs | |||
IPO Valuation – Key Performance Indicator
| KPI | Values |
| Market Cap | – |
| P/E | – |
| Return on equity (ROE) | 9.41% |
| Return on capital employed (ROCE) | 18.88% |
| Earnings Per Share (EPS) | ₹1.15 |
| Return on Net Worth (RoNW) | 9.41% |
Objects of the Issue
The company plans to utilise the funds raised through the issue towards general corporate purposes, and to augment the company’s tier-1 capital base to meet its future capital requirements arising out of the growth of the business.
Note: Refer to the DRHP for more details.
Read more about upcoming IPOs here.
