The IBL Finance IPO has begun today (Tuesday, January 9), and will close on Thursday, January 11. The IPO price band for IBL Finance is set at 51 per share, according to the company’s red herring prospectus. The IPO lot size is 2,000 shares. Investors may bid for a minimum of 2,000 shares and in multiples thereof.
As of Fiscal 2020, IBL Finance will offer blockchain-based financial services instead of traditional financial services.
The company is a fintech company that provides instant personal loans through a nearly entirely digital app.
IBL Finance IPO basis of allotment is tentatively set for Friday, January 12 and refunds will be initiated by the company on Monday, January 15, while shares will be credited to allottees’ demat accounts that day. On Tuesday, January 16, IBL Finance shares are expected to be listed on the NSE SME.
According to the RHP, the company’s listed peers include MAS Financial Services Ltd (with a P/E of 23.43), Arman Financial Service Ltd (with a P/E of 23.64), Apollo Finvest (India) Ltd (with a P/E of 29.58), CSL Finance Ltd (with a P/E of 21.12), and Ugro Capital Ltd (with a P/E of 48.16).
IBL Finance Limited’s revenue increased by 307.59% and its profit after tax (PAT) increased by 351.28% between March 31, 2023 and March 31, 2022.
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IBL Finance IPO details
IBL Finance’s IPO, worth 33.41 crore, constitutes a complete fresh issue of 6,550,000 equity shares.
The company will use the net proceeds from the offering for the following purposes: general corporate purposes; expanding its Tier-I capital base to meet its anticipated future capital requirements as a result of its growth in assets and operations.
The IPO registrar is Link Intime India Private Ltd, and Fedex Securities Pvt Ltd is the book running lead manager.
Manish Patel, Piyush Patel, and Mansukhbhai Patel are the company’s promoters.
Subscription status for the IBL Finance IPO
The subscription status for IBL Finance’s initial public offering has been 3.60 times. According to data available on Chittorgarh.com, retail investors subscribed 5.82 times to the issue and non-institutional buyers subscribed 1.11 times to the issue.
Data on chittorgarh.com indicates the company has received bids for 2,12,04,000 shares against 58,90,000.
IBL Finance IPO GMP today
Accordaing to investorgain.com, IBL Finance IPO grey market premium was zero, indicating that shares were trading at their issue price of $51, with no premium or discount in the grey market.
In the grey market premium, investors are prepared to pay a premium over the issue price.
Review of the IPO of IBL Finance
“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 annualised super earnings, the issue appears aggressively priced. The sustainability of margins remains major concern going forward. There is no harm in skipping this pricey issue,” said Dilip Davda, the contributing editor at Chittorgarh.
