Admin
03 May 2024

IBL Finance Limited IPO

IBL Finance Ltd. (IBL FL) commenced lending business to self-employed professional and small business entrepreneurs during the financial year March 31, 2019. Subsequently, from Fiscal 2020 it migrated to a fintech based financial services platform. As a technology driven fintech company it leverages technology and data-science to make lending quick and easy. IBL finance launched a personal loans business to fulfill the needs of the underserved Indian population. Its digital personal loan offering is well-suited to address the needs of the growing digitally connected Indians.

The company launched a mobile App based personal loans business under the "IBL: Instant Personal Loan '' brand. Under personal loan lending business, it extends instant personal loans up to Rs. 50,000 with tenors of up to 12 months through an entirely digital mobile App-only process. IBL Finance IPO is a fixed price issue of Rs 33.41 crores. The issue is entirely a fresh issue of 65.5 lakh shares. IBL Finance IPO price is ₹51 per share. The minimum lot size for an application is 2000 Shares. Fedex Securities Pvt Ltd is the book running lead manager of the IBL Finance IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for IBL Finance IPO is Market-Hub Stock Broking.

IBL Finance IPO Overview

Detail	Description
IPO Date	January 9, 2024 to January 11, 2024
Listing Date	January 16, 2024
Face Value	₹10 per share
Price	₹51 per share
Lot Size	2000 Shares
Total Issue Size	6,550,000 shares (aggregating up to ₹33.41 Cr)
Fresh Issue	6,550,000 shares (aggregating up to ₹33.41 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME
Share holding pre issue	18,180,650
Share holding post issue	24,730,650
Market Maker portion	330,000 shares Market-Hub Stock Broking

IBL Finance IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Tuesday, January 9, 2024
IPO Close Date	Thursday, January 11, 2024
Basis of Allotment	Friday, January 12, 2024
Initiation of Refunds	Monday, January 15, 2024
Credit of Shares to Demat	Monday, January 15, 2024
Listing Date	Tuesday, January 16, 2024
Cut-off time for UPI mandate confirmation	5 PM on January 11, 2024

IBL Finance IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	2000	₹102,000
Retail (Max)	1	2000	₹102,000
HNI (Min)	2	4,000	₹204,000

IBL Finance IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	-
Market Maker Shares Offered	330,000 (5.04%)
Other Shares Offered	3,110,000 (47.48%)
Retail Shares Offered	3,110,000 (47.48%)
Total Shares Offered	6,550,000 (100%)

IBL Finance IPO Promoter Holding

Share Holding Pre Issue	85.55%
Share Holding Post Issue	62.89%

Company & Financials

Incorporated in August 2017, IBL Finance Limited is a fintech-based financial services platform that uses technology and data science to make lending easier and faster. IBL Finance is a mobile app that offers instant personal loans up to ₹50,000 through a completely digital process. Loans can be approved in as fast as under 3 minutes. As of March 31, 2023 the company has disbursed 1,63,282 personal loans amounting to ₹ 7,105.44 lakhs. In 2023, the IBL Instant Personal Loan app had 381,156 logins. On average, 27,969 users were active on the app every month. As of August 2023, the company has 7 branches in major cities of Gujarat and Maharashtra. The company's advanced underwriting algorithms use data from many sources to generate a credit report with over 500 data points. Keeping the language simple and concise to ensure the customers can easily understand the information the company provides.

IBL Finance Limited Financial Information

Period Ended	31 July 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	2,317.60	2,218.11	1,022.85	339.10
Revenue	492.58	1,333.13	327.08	112.59
Profit After Tax	120.60	192.83	42.73	-9.88
Net Worth	2,169.34	2,048.74	355.47	312.73
Reserves and Surplus	351.27	1,139.71	29.47	-13.27
Total Borrowing	7.51	9.12	640.58
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	9.41%
ROCE	18.88%
Debt/Equity	0
RoNW	9.41%
P/BV	4.18

	Pre IPO	Post IPO
EPS (Rs)	1.06	1.46
P/E (x)	48.08	34.86

Objectives of IBL Finance IPO

The company proposes to utilize the Net Proceeds from the Issue towards the following objectives:

1. Augmenting the company's Tier-I capital base to meet the company's future capital requirements, arising out of the growth of the business and asset.
2. General corporate purposes.

IBL Finance IPO Review

The company is operating in a highly competitive and fragmented segment of financing self-employed under served masses with its fintech based app. Based on FY24 annualized super earnings, the issue appears aggressively priced. The sustainability of margins remains a major concern going forward. There is no harm in skipping this pricey issue.

FAQs for IBL Finance IPO

What is IBL Finance Limited's IPO?

The IBL Finance Ltd IPO contains a fresh IPO of 67,25,000 shares, aggregating ₹34.30 crore. The price of the IPO is ₹51 per share. The IPO will open on January 9, 2023.
When will IBL Finance Limited's IPO be allotted?

The Basis of Allotment will happen on Friday, January 12, 2024.
When will IBL Finance Limited's IPO open for subscription?

The IPO subscription window will open on Tuesday, January 9, 2024.
What minimum lot size can retail investors subscribe to?

The minimum lot size retail investors can subscribe to is 1 lot, and the lot size is 2,000 shares.
When will IBL Finance Limited list on exchanges?

IBL Finance Ltd IPO will be listed on the NSE Emerge on Tuesday, January 16, 2024.