IBL Finance share price made a decent debut on the bourses today, January 16, 2024, as the stock got listed at ₹56 apiece on NSE SME, a premium of 10% to the issue price of ₹51 apiece. The stock quickly jumped to ₹58.80 after hitting the secondary market.
The ₹33.41 crore SME IPO was open for subscription between January 9 and January 11, 2024, at a price band of ₹51 apiece. The IPO is a completely fresh issue of 6,550,000 equity shares.
The issue was overall subscribed to 17 times. The issue received a healthy response from retail investors whose portion set was subscribed to 24 times and a decent response from non-institutional buyers whose portion set was subscribed to 9.94 times, as per data available on Chittorgarh.
The company plans to use the net proceeds from the issue for general corporate purposes, expanding the Tier-I capital base to cover the company's anticipated future capital needs resulting from asset and business growth.
About IBL Finance
IBL Finance Limited is a fintech-based financial services platform that uses technology and data science to make lending easier and faster. It commenced its lending business to self-employed professionals and small business entrepreneurs during the financial year on March 31, 2019.
Subsequently, in fiscal 2020, it migrated to a fintech-based financial services platform. It launched our mobile-based personal loan business under the “IBL: Instant Personal Loan” brand.
Under the personal loan lending business, the company extend instant personal loans up to ₹50,000 with tenors of up to 12 months through an entirely digital mobile app-only process. Since its launch and up to March 31, 2023, the company has disbursed 1,63,282 personal loans amounting to ₹71 crore, the company's RHP showed.
IBL Finance has listed peers, including MAS Financial Services, Arman Financial Service, Apollo Finvest (India), CSL Finance, and Ugro Capital.
IBL Finance Financials
The company reported revenue of ₹112.59 lakh in FY21, which improved to ₹327.08 lakh in FY22 and further to ₹1,333.13 lakh in FY23. In FY21, the company reported a net loss of ₹9.88 lakh, marking a turnaround in FY22 with a net profit of ₹42.73 lakh. The momentum persisted, and in FY23, the net profit further escalated to ₹192.83 lakh.
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