IBL Finance SME IPO: Check out price band, GMP, financials, risks, and listing date

IBL Finance IPO: The issue consists of only a fresh issue of over 65.5 lakh shares worth Rs 33.41 crore.

The public issue of IBL Finance will open on January 9 and close on 11th. The company started its lending business to self-employed professionals and small business entrepreneurs on March 31, 2019. From fiscal 2020, the company migrated to a fintech-based financial services platform.

Issue Size

The IPO consists of only a fresh issue of over 65.5 lakh shares worth Rs 33.41 crore.

Price Band

The price for the issue has been fixed at Rs 51 per share of the face value of Rs 10.

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Lot Size

Investors can bid for a minimum of 2,000 equity shares and in multiples of 45 shares thereafter.

Financial Performance

The company reported a net profit of Rs 1.92 crore with a revenue of Rs 13.33 crore in FY23. PAT margin improved from 13.06 in FY22 percent to 14.49 percent in FY23. The gross NPA in FY23 stood at Rs 75.77 lakhs and AUM at Rs 14.61 crore.

Objective

The company plans to use the net proceeds to augment the Tier-I capital base to meet the future capital requirements arising out of the growth of the business and asset and general corporate purposes.

Promoters

The promoters of the company are Manish Patel, Piyush Patel, Mansukhbhai Patel Manishbhai M Patel HUF and Mansukhbhai K Patel HUF.

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Lead Managers

The book-running lead managers of the IPO are Fedex Securities, Bigshare Services is the registrar and Market-Hub Stock Broking is the market maker.

Key Risks

(i) High levels of customer defaults or delays in repayment of loans could adversely affect the business. Gross NPAs increased from Rs 20.92 lakh as of March 31, 2022, representing 2.48 percent of the loan book to Rs 75.77 lakh as of March 31, 2023, representing 5.19 percent of the total loans and advances.

(ii) The company had negative net cash flows from operating, investing and financing activities in the recent financial years.

GMP

The shares were trading flat in the grey market.

Listing Date

The basis of allotment will be finalised by January 12 and shares will be credited to demat accounts by January 15. The stock will be listed on the NSE SME platform on January 16, as per the red-herring prospectus.