The initial public offer (IPO) of IBL Finance was subscribed 2.18 times so far on Tuesday, the first day of the bidding process. The SME IPO, which closes on January 11, received bids for 1.42 crore shares as against 65.5 lakh shares on offer.
The IPO is entirely a fresh equity issue of up to 67.25 lakh equity shares aggregating to Rs 34.3 crore.
The company is offering its shares at Rs 51 apiece, and investors can bid for 2,000 shares in 1 lot. About 50% of the offer is reserved for retail investors, and the rest 50% for other investors.
IBL Finance GMP
In the unlisted market, there is no clear trend of GMP for the company.Also Read: Jyoti CNC Automation IPO subscription status: Issue sails through on Day 1, retail portion booked 4.53 times. Check details
Other details
The net proceeds from the public offer will be used for augmenting the company’s tier-1 capital base to meet future capital requirements and general corporate purposes.
As a technology-driven fintech company, IBL Finance leverages data-science to make lending quick and easy. The company through its mobile app provides instant personal loans up to Rs 50,000 with tenors of up to 12 months through an entirely digital mobile app-only process.
India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market.
The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities.
For the financial 2023, the company clocked revenues of Rs 13.3 crore and net profit of Rs 1.92 crore.
Fedex Securities is acting as the lead manager to the issue and Link Intime India is the registrar. The IPO allotment will likely be made on January 12. The company’s shares will likely get on January 16.
The company’s shares are proposed to be listed on the NSE SME platform.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
