IBL Finance Limited is set to launch its Initial Public Offering (IPO) through a fixed-price issue, aiming to raise Rs 33.41 crores. The IPO comprises an entirely fresh issue of 65.5 lakh shares.
**Key Details of IBL Finance IPO:**
– **Issue Size:** The IPO is a fixed-price issue with a total size of Rs 33.41 crores, consisting of a fresh issue of 65.5 lakh shares.
– **Price:** The price per share for the IBL Finance IPO is fixed at ₹51.
– **Lot Size:** The minimum lot size for an application is 2000 shares.
– **Minimum Investment:** Retail investors need a minimum investment of ₹102,000, while HNI investors need to invest in 2 lots (4,000 shares), amounting to ₹204,000.
– **Book Running Lead Manager:** Fedex Securities Pvt Ltd is the book running lead manager.
– **Registrar:** Bigshare Services Pvt Ltd is the registrar for the issue.
– **Market Maker:** Market-Hub Stock Broking is the market maker for the IBL Finance IPO.
– **Listing Date:** The IPO is expected to list on NSE SME on Tuesday, January 16, 2024.
**IPO Timeline (Tentative Schedule):**
– IPO opens on January 9, 2024, and closes on 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.
**Promoter Holding:**
– The promoters of the company are Manish Patel, Piyush Patel, and Mansukhbhai Patel.
– Shareholding pre-issue: 85.55%
– Shareholding post-issue: 62.89%
**Reservation Details:**
– The IPO offers 6,220,000 shares, with 44.69% allocated to NII (Non-Institutional Investors) and 50% to RII (Retail Individual Investors).
**About IBL Finance Limited:**
Incorporated in August 2017, IBL Finance Limited operates as a fintech-based financial services platform utilizing technology and data science for faster and easier lending. The company’s mobile app, IBL Finance, offers instant personal loans up to ₹50,000 through a completely digital process, with approval in under 3 minutes.
As of March 31, 2023, the company has disbursed 1,63,282 personal loans amounting to ₹7,105.44 lakhs. The IBL Instant Personal Loan app recorded 381,156 logins in 2023, with an average of 27,969 active users monthly. By August 2023, the company has established 7 branches in major cities of Gujarat and Maharashtra.
**Financial Information (Restated):**
– Revenue increased by 307.59%, and profit after tax (PAT) rose by 351.28% between March 31, 2023, and March 31, 2022.
**Key Performance Indicators:**
– ROE: 9.41%
– ROCE: 18.88%
– Debt/Equity: 0
– RoNW: 9.41%
**Objects of the Issue:**
The Net Proceeds from the Issue will be utilized to augment the company’s Tier-I capital base for meeting future capital requirements due to business growth and for general corporate purposes.
**IPO Review:**
[Dilip Davda] The company operates in a highly competitive and fragmented segment, financing self-employed underserved masses with its fintech-based app. The IPO appears aggressively priced based on FY24 annualized super earnings, and the sustainability of margins remains a major concern.
**Subscription Status (Day 1):**
The IBL Finance IPO is subscribed 4.20 times on January 9, 2024. The retail category is subscribed 6.65 times, the QIB category [.] times, and the NII category 1.46 times.
**Prospectus:**
Detailed information about the IPO can be found in the IBL Finance IPO Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP).
