IBL Finance IPO: Check GMP, second day subscription status, verification and other important details

IBL Finance's IPO opens for subscription on Tuesday, January 9th and closes on Thursday, January 11th. The price range for IBL Finance's IPO has been set at ₹51 per share, according to the company's Red Herring Prospectus (RHP). The lot size of the IBL Finance IPO consists of 2,000 shares. Investors can bid for at least 2,000 shares and multiples thereof.

In the fiscal year ending March 31, 2019, IBL Finance began lending to the self-employed and small business owners. The company then transitioned to a fintech-based financial services platform starting in fiscal year 2020.

This fintech company, leveraging technology and data science, makes lending quick and easy. The company offers instant personal loans through a mobile app that is almost entirely digital.

Also Read: IBL Finance IPO sets price range ₹51 each: Review GMP, key dates, issue details and more

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Tentatively, the basis for allotment of shares in IBL Finance's IPO will be finalized on Friday, January 12 and the company will issue refunds on Monday, January 15 while the shares will be deposited into the demat account on the same day be credited to the allottee. IBL Finance shares are expected to list on the NSE SME on Tuesday, January 16.

The company's listed competitors as per RHP are MAS Financial Services Ltd (with a P/E ratio of 23.43), Arman Financial Service Ltd (with a P/E ratio of 23.64), Apollo Finvest (India) Ltd (with a P/E ratio of 29.58). ), CSL Finance Ltd (with a P/E ratio of 21.12) and Ugro Capital Ltd (with a P/E ratio of 48.16).

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

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Details about IBL Finance’s IPO

IBL Finance IPO that is worthwhile ₹33.41 crore, is an all-new issue of 6,550,000 shares; According to RHP, there is no OFS (Offer for Sale) component.

The Company intends to use the net proceeds of the offering for: general corporate purposes; Expansion of the Tier I capital base to meet the Company's expected future capital requirements due to asset and business growth.

The Registrar of 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 promoters of the company.

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IBL Finance IPO Subscription Status

The subscription status for IBL Finance's IPO is 7.01x on the first day so far. The issue received positive response from retail investors whose share was subscribed 11.16 times and non-institutional buyers whose share was subscribed 2.36 times, as per data available on chittorgarh.com.

According to chittorgarh.com, the company has received offers for 4,12,70,000 shares against 58,90,000 shares on offer at 2:13 pm IST.

The IBL Finance IPO subscription status is 4.64x on the first day.

IBL Finance IPO GMP today

The gray market premium for IBL Finance's IPO was ₹0, which meant the shares traded at their issue price of ₹51 without any premium or discount on the gray market according to investorgain.com.

“Gray market premium” indicates investors’ willingness to pay more than the issue price.

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IBL Finance IPO Review

“With its fintech-based app, the company operates in a highly competitive and fragmented segment of financing the self-employed, underserved masses. Based on annualized super earnings for FY24, the issue appears to be aggressively priced. The sustainability of margins will remain a major concern in the future. There is no harm in skipping this expensive issue,” said Dilip Davda, Editor, Chittorgarh.

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend investors consult certified experts before making an investment decision.

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