IBL Finance IPO: IBL Finance Limited IPO Details

The IBL Finance Limited IPO, set to open for subscription from January 9, 2024, to January 11, 2024, is generating significant buzz in the financial markets. This fixed price issue aims to raise Rs 34.30 crores through an entirely fresh issue of 67.25 lakh shares. In this blog, we will delve into the key details of the IBL Finance IPO, the company’s background, its financial performance, and what investors can expect from this offering.

Also See: IBL Finance SME IPO GMP

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IPO Details

Here’s a summary of the essential details of the IBL Finance IPO:

IPO NameIBL Finance IPO
IPO DateJanuary 9, 2024, to January 11, 2024
Basis of AllotmentJanuary 12, 2024
Listing DateJanuary 16, 2024
Face Value₹10 per share
Price₹51 per share
Lot Size2000 Shares
Total Issue Size6,725,000 shares (aggregating up to ₹34.30 Cr)
Issue TypeFixed Price Issue IPO
Listing AtNSE SME
Shareholding pre-issue18,180,650
Shareholding post-issue24,905,650

Also Read: Upcoming IPOs in 2024: 11 expected issues in the new year; check out the full list

IPO Reservation

The IBL Finance IPO offers 50% of the net issue to both retail and other investors.

IPO Lot Size

Investors can apply for a minimum of 2000 shares and in multiples thereof. The table below outlines the minimum and maximum investment criteria for retail and High Net Worth Individuals (HNIs):

ApplicationLotsSharesAmount
Retail (Min)12000₹102,000
Retail (Max)12000₹102,000
HNI (Min)24000₹204,000

Also Read: Announced IPOs: Upcoming Big IPOs in India 2024

Promoter Holding

The Promoters of IBL Finance Limited are Manish Patel, Piyush Patel, and Mansukhbhai Patel, collectively holding 85.55% of the company’s shares.

IPO Objectives

IBL Finance Limited aims to utilize the net proceeds from the IPO for the following objectives:

  1. Augmenting the company’s Tier-I capital base to meet future capital requirements arising from business growth and assets.
  2. General corporate purposes.

Also Read: When Can a Company Go for IPO in India

Financial Performance

IBL Finance Limited has shown remarkable financial growth, with revenue increasing by 307.59% and profit after tax (PAT) rising by 351.28% between the financial years ending on March 31, 2023, and March 31, 2022.

Period Ended31 Mar 202331 Mar 202231 Mar 2021
Assets2,218.111,022.85339.10
Revenue1,333.13327.08112.59
Profit After Tax192.8342.73-9.88
Net Worth2,048.74355.47312.73
Reserves and Surplus1,139.7129.47-13.27
Total Borrowing9.12640.58
Amount in ₹ Lakhs
Financial Data Visualization

Also Read: Benefits and Risks of Investing in IPOs

About IBL Finance Limited

Incorporated in August 2017, IBL Finance Limited is a fintech-based financial services platform that leverages technology and data science to streamline lending processes. The company operates a mobile app, IBL Instant Personal Loan, which offers instant personal loans of up to ₹50,000 through an entirely digital process, with loan approvals in under 3 minutes.

As of March 31, 2023, IBL Finance had disbursed 1,63,282 personal loans, totaling ₹7,105.44 lakhs. In 2023, the app had 381,156 logins, with an average of 27,969 monthly active users.

With 7 branches in major cities of Gujarat and Maharashtra as of August 2023, the company combines advanced underwriting algorithms and data from multiple sources to generate comprehensive credit reports, ensuring customer-friendly, easy-to-understand information.

As of June 30, 2023, IBL Finance employed 81 full-time employees, showcasing its commitment to growth and innovation.

Key Performance Indicators

  • Return on Equity (ROE): 9.41%
  • Return on Capital Employed (ROCE): 18.88%
  • Debt/Equity: 0
  • Earnings per Share (EPS): ₹1.15
  • Return on Net Worth (RoNW): 9.41%

Also Read: What is IPO?: Benefits of Investing in an IPO

IPO Registrar

Link Intime India Private Ltd

Lead Manager(s)

Fedex Securities Pvt Ltd

IPO Timeline

  • IPO opens on January 9, 2024, and closes on January 11, 2024.
  • Basis of Allotment: January 12, 2024
  • Initiation of Refunds: January 15, 2024
  • Credit of Shares to Demat: January 15, 2024
  • Listing Date: January 16, 2024
  • Cut-off time for UPI mandate confirmation: 5 PM on January 11, 2024
IBL Finance IPO

Conclusion

The IBL Finance Limited IPO presents an exciting opportunity for investors to participate in the growth of a fintech-based financial services platform that has shown remarkable financial performance. With a focus on digital lending and innovation, IBL Finance is well-positioned for future growth, making this IPO worth considering for those looking to diversify their investment portfolio. However, as with any investment, it’s essential to conduct thorough research and consult with financial advisors before making any decisions.

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