IBL Finance Limited IPO  - Complete Overview

IBL Finance started in August 2017 as a fintech company that makes borrowing money easier and quicker using technology. They have a mobile app called IBL Instant Personal Loan, offering instant personal loans up to Rs. 50,000 through an all-digital process that takes less than 3 minutes for approval.

By March 31, 2023, the company had given out 163,282 personal loans totaling Rs. 71.05 crore. In 2023, their loan app had 381,156 logins, with an average of 27,969 users every month. As of August 2023, IBL Finance has 7 branches in major cities of Gujarat and Maharashtra.

The company uses advanced algorithms that consider data from various sources to create a credit report with over 500 data points, all explained in simple language for customers to understand. As of June 30, 2023, IBL Finance employs 81 full-time employees.

In simple terms, IBL Finance is a modern financial platform using technology to offer quick and hassle-free personal loans through their app. They have branches in Gujarat and Maharashtra and use advanced algorithms to make the lending process efficient.

 

IBL Finance Limited IPO Overview

IBL Finance Limited IPO date is slated to be open for subscription from January 9, 2023, to January 11, 2023. This NSE SME IPO follows a Fixed Price Issue IPO.

IBL Finance Limited IPO price is fixed at Rs. 51 per share. The upcoming NSE SME IPO will be listed on January 16, 2023.

The total issue size of this IPO amounts to Rs.34.30 CR. The company has reserved 50% for retail investors and 50% for non-institutional investors.

 

IBL Finance Limited IPO timetable (Tentative):

Events	Date
IPO Opening Date	9 January 2023
IPO Closing Date	11 January 2023
IPO Allotment Date	12 January 2023
Refund initiation	15 January 2024
IPO Listing Date	16 January 2024

 

 

IBL Finance Limited IPO Details:

IPO opening & closing date	9 January to 11 January 2023
Face value	Rs.10 per share
Issue Price	Rs. 51 per share
Lot Size	2000  Shares
Price of 1 lot	Rs. 1,02,000
Total Issue Size	6,725,000 shares (aggregating up to Rs 34.30 Cr)
Fresh issue	6,725,000 shares (aggregating up to Rs 34.30 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Link Intime India Private Ltd

 

 

IBL Finance Limited IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	2,000
Maximum Lot Investment (Retail)	1 lot	2,000
Minimum Lot Investment (HNI)	2 lot	4,000

IBL Finance Limited IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

Company Financial

IBL Finance Limited's financial snapshot for FY23 reveals impressive consistent growth in total assets, revenue, PAT, net worth, and reserve & surplus. 

(Amount in Lakhs)

Period	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Total Assets	2,218.11	1,022.85	339.10
Total Revenue	1,333.13	327.08	112.59
PAT	192.83	42.73	-9.88
Net worth	2,048.74	355.47	312.73
Reserve & Surplus	1,139.71	29.47	-13.27
Total Borrowings	9.12	640.58	--

 

Revenue by Operations       

IBL Finance Limited experienced significant revenue growth from FY21 to FY23.

(amount in Lakhs)

Particulars	Mar 31  FY 23	Mar 31  FY 22	Mar 31  FY 21
Revenue from operations	1330.52	327.08	112.59
Other Operating Income	2.61	0.00	0.00
Total Revenue from operations	1333.13	327.08	112.59

 

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

1. Augmenting Tier-I capital base.

2. Meeting future capital requirements due to business and asset growth.

3. General corporate purposes.

 

Promoters and Management of IBL Finance Limited IPO

1. Manish Patel.

2. Piyush Patel.

3. Mansukhbhai Patel.

Pre-issue Promoter Shareholding	85.55%
Post-issue Promoter Shareholding

 

IBL Finance Limited IPO Lead Managers

•  Fedex Securities Pvt Ltd

Peers of IBL Finance Limited IPO

Companies IPO Priced at Rs. 10 per share, has a low P/E ratio of 1.15 and an EPS of Rs. 10. Whereas Its peers, including MAS Financial Services and Arman Financial Services, show diverse valuation metrics.

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
IBL Finance Limited	10		1.15
MAS Financial Services Limited	10	22.68	37.18
Arman Financial Service Limited	10	20.93	110.47
Apollo Finvest (India) Limited	10	19.56	27.01
CSL Finance Limited	10	15.38	22.02
Ugro Capital Limited	10	53.43	5.69

 

Evaluation

The IPO is priced within the range of Rs. 51 per share.

Evaluation of P/E Ratio

- Considering the FY23 EPS of Rs 1.15 from the last year, the resulting P/E ratio is 44.35x.

- Taking into account the weighted EPS of Rs 3.27 for the last three years, the P/E ratio amounts to 15.60x.

    

Comparative Analysis of Listed Peers:

- Ugro Capital Limited has a P/E ratio of 53.43x (the highest).

- CSL Finance Limited has a P/E ratio of 15.38x (the lowest).

Consequently, the IPO Price range at a P/E of 44.35x to 15.60x is considered highly overvalued.

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

IPO's Strengths

1. Prioritising mobile usage for improved customer interaction;

2. Using smart risk management and advanced technologies like data science and machine learning in our operations.

3. Stable and relatively experienced management team; and

4. Improved financial performance.
   
   

IPO's Weaknesses

1. Dependency on the accuracy and completeness of information provided by their customers and certain third party service.

2. Their business relies on the trust that customers place in our brand.

3. Volatility in interest rates.

4. Not being able to sustain our growth or manage it effectively.

5. Failure to keep pace with rapid changes in technology.

 

 

 

IPO GMP Today 

The Latest GMP of IBL Finance Limited IPO is Rs.4.

Conclusion

In summary, IBL Finance Limited's IPO offers a comprehensive overview of a fintech company that leverages technology to simplify borrowing through its IBL Instant Personal Loan app. With significant loan disbursements and a growing user base, the company has established a modern financial platform.The IPO, opening from January 9 to January 11, 2023, and priced at Rs. 51 per share, aims to raise Rs. 34.30 CR.

Evaluation of the P/E ratio indicates a range from 44.35x to 15.60x, suggesting a potential overvaluation. Comparative analysis with peers underscores this, with the IPO priced at a premium.The absence of a dividend payment history and reliance on brand trust highlight additional considerations. Investors are encouraged to stay informed about the IPO and its market performance.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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