IBL Finance IPO opens today: Fintech platform aims to raise Rs 33.41 crore

IBL Finance IPO: IBL Finance Limited, a fintech-based financial services platform, is set to launch its Initial Public Offering (IPO) today, January 9, 2024, seeking to raise Rs 33.41 crore through a fixed price issue. The IPO comprises an entirely fresh issue of 65.5 lakh shares and will be open for subscription until January 11, 2024.

IPO details and timeline

The IBL Finance IPO, priced at Rs 51 per share, allows investors to bid for a minimum of 2,000 shares, with the minimum lot size set at Rs 102,000 for retail investors. High Net Worth Individuals (HNI) can invest in a minimum of 2 lots (4,000 shares) amounting to Rs 204,000. 

The subscription period opens today, January 9, 2024, and closes on January 11, 2024. Allotment results are anticipated to be finalised by Friday, January 12, 2024, and the company is slated to list on NSE SME on Tuesday, January 16, 2024.

Digital lending landscape

Incorporated in August 2017, IBL Finance Limited is a fintech-based financial services platform that leverages technology and data science to streamline the lending process. The company's mobile app offers instant personal loans up to Rs 50,000 through a fully digital process, with approvals possible in under 3 minutes.

As of March 31, 2023, IBL Finance has disbursed 1,63,282 personal loans totaling Rs 7,105.44 lakhs, according to the DRHP filing. The company has strategically expanded its presence with seven branches in major cities of Gujarat and Maharashtra as of August 2023.

IBL Finance IPO objectives and financial overview

The net proceeds from the IPO will be utilised to augment the company's Tier-I capital base for future capital requirements and general corporate purposes, as per the DRHP filing. IBL Finance's advanced underwriting algorithms use data from various sources to generate a comprehensive credit report with over 500 data points. As of June 30, 2023, the company has a team of 81 full-time employees.