IBL Finance IPO: Check GMP, subscription status on day 3, review, other key details

IBL Finance IPO has opened for subscription on Tuesday, January 9, and will close on Thursday, January 11. IBL Finance IPO price band has been set at ₹51 per share, as per company's red herring prospectus (RHP). IBL Finance IPO lot size consists of 2,000 shares. Investors can bid for a minimum of 2,000 shares and in multiples thereof.

During the fiscal year that ended on March 31, 2019, IBL Finance started lending money to self-employed professional and small business owners. The business subsequently switched to a fintech-based financial services platform starting in Fiscal 2020.

Lending is made quick and simple by this fintech company, which is driven by technology and data science. Immediate personal loans are offered by the company via a mobile app that is nearly entirely digital.

Also Read: IBL Finance IPO sets price band at ₹51 apiece: check GMP, key dates, issue details, more

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Tentatively, IBL Finance IPO basis of allotment of shares will be finalised on Friday, January 12 and the company will initiate refunds on Monday, January 15, while the shares will be credited to the demat account of allottees on the same day. IBL Finance shares are likely to be listed on NSE SME on Tuesday, January 16.

The company's listed peers as per the RHP are 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).

Between the fiscal year ending on March 31, 2023, and March 31, 2022, IBL Finance Limited's revenue increased by 307.59% and its profit after tax (PAT) increased by 351.28%.

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IBL Finance IPO details

IBL Finance IPO, which is worth ₹33.41 crore, is completely a fresh issue of 6,550,000 equity share; there is no offer for sale (OFS) component, according to RHP.

The company intends to use the net proceeds of the offering to the following goals: general corporate purposes; expanding the Tier-I capital base to cover the company's anticipated future capital needs resulting from asset and business growth.

The registrar of the IBL Finance IPO is Link Intime India Private Ltd, and the book running lead manager is Fedex Securities Pvt Ltd.

Manish Patel, Piyush Patel, and Mansukhbhai Patel are the company's promoters.

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IBL Finance IPO subscription status

IBL Finance IPO subscription status is 11.46 times on day 3, so far. The issue received positive response from retail investors who's portion set was subscribed 17.58 times, and non-institutional buyers who's portion was subscribed 4.59 times, as per data available on chittorgarh.com. 

The company has received bids for 6,74,86,000 shares against 58,90,000 shares on offer, at 12:11 IST, according to data on chittorgarh.com.

IBL Finance IPO subscription status was 4.64 times on day 1, and 8.97 times on day 2. 

IBL Finance IPO GMP today

IBL Finance IPO grey market premium was ₹0, which meant shares were trading at their issue price of ₹51 with no premium or discount in the grey market according to investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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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 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.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.