IBL Finance stock lists at 9.8% premium over IPO price on NSE SME

IBL Finance IPO: Ahead of the listing, shares were trading at a 7 percent premium in the grey market

Shares of IBL Finance listed at a 9.8 percent premium over the IPO price on January 16. The stock opened at Rs 56 against the issue price of Rs 51 on the NSE SME platform. Within minutes, the stock jumped 15.2 percent over the issue price to Rs 58.8.

Ahead of the listing, IBL Finance shares were trading at a 7 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.

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The issue had received a decent response from investors. The offer was subscribed 17 times and the retail portion was booked 24 times. The IBL Finance IPO opened for bids on January 9 and closed on 11th. The price for the issue was fixed at Rs 51 per share. Through the IPO, the company raised Rs 33.41 crore. The offer was entirely a fresh issue of 65.5 lakh shares.

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The company will use the proceeds to augment the Tier-I capital base to meet the future capital requirements, arising out of the growth of the business and assets. The remaining amount will be used for general corporate purposes.

Fedex Securities was the book-running lead manager, Bigshare Services was the registrar and  Market-Hub Stock Broking was the market maker for the issue.

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IBL Finance is a fintech-based services platform that uses technology and data science to make lending easier and faster. Through its mobile app, the company offers instant personal loans up to Rs 50,000 through a completely digital process.