January 9, 2023
New Delhi, India
IBL Finance IPO
The initial public offering (IPO) of IBL Finance, featuring a price band of ₹51 per share and a lot size of 2,000 shares, has garnered significant attention on its opening day. Investors are showing confidence in the company’s growth prospects, driven by its transition to a fintech-based financial services platform.
Business Evolution:
Initially catering to self-employed professionals and small business owners, IBL Finance has embraced technology and data science to offer quick and simple loans. The company’s shift towards a fintech model, particularly evident from Fiscal 2020, underscores its commitment to leveraging digital innovation in the financial sector.
Financial Milestones:
The fiscal years ending March 31, 2022, and March 31, 2023, have seen remarkable financial growth for IBL Finance. With a revenue surge of 307.59% and a 351.28% increase in profit after tax, the company showcases robust financial performance, capturing the attention of potential investors.
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Peer Comparison:
IBL Finance’s listed peers, including MAS Financial Services Ltd, Arman Financial Service Ltd, Apollo Finvest (India) Ltd, CSL Finance Ltd, and Ugro Capital Ltd, provide valuable context. The company’s growth is contextualized against their respective Price-to-Earnings (P/E) ratios, aiding investors in making informed decisions.
Subscription Status:
As of day 1, the IPO has garnered a subscription status of 3.60 times. Retail investors, showing a keen interest, have subscribed at 5.82 times, while non-institutional buyers are at 1.11 times. The overall response indicates positive market sentiment.
Grey Market Premium:
Contrary to expectations, the grey market premium for IBL Finance IPO is currently at ₹0. This suggests that shares are trading at the issue price of ₹51, with no discernible premium or discount in the grey market according to investorgain.com.
Latest Stock Market Updates
Timeline and Listing:
The basis of allotment is expected to be finalized on January 12, with refunds initiated on January 15. Shares are anticipated to be credited to demat accounts on the same day. The listing on NSE SME is tentatively set for January 16.
Conclusion:
With a fresh issue of 6,550,000 equity shares, IBL Finance’s IPO, valued at ₹33.41 crore, aims to utilize net proceeds for general corporate purposes and fortifying Tier-I capital. Promoters Manish Patel, Piyush Patel, and Mansukhbhai Patel drive the company’s vision. As investors weigh their options, the strong day 1 subscription signals optimism surrounding IBL Finance’s future trajectory in the financial market.
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Disclaimer:
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