Upcoming SME IPO: IBL Finance's Public Offer To Open On January 9; What GMP Hints?

IBL Finance is gearing up to launch its Initial Public Offering (IPO) on Tuesday, January 9, with a price band set at Rs 51 per share. Investors have the opportunity to subscribe until Thursday, January 11, as the company makes a significant stride in the fintech-based financial services sector.

IBL Finance, which shifted its focus to fintech services in Fiscal 2020, has emerged as a strong player in the lending landscape. The company, known for simplifying the lending process through technology and data science, began providing financial assistance to self-employed professionals and small business owners during the fiscal year ending March 31, 2019.

The company's approach allows immediate personal loans through a nearly entirely digital mobile app, marking a departure from traditional lending practices. With a lot size consisting of 2,000 shares, investors can bid for a minimum of 2,000 shares and in multiples thereof, making the IPO accessible to a wide range of participants.

According to the Draft Red Herring Prospectus (DRHP), IBL Finance reported revenue from operations of Rs 13.30 crore, Rs 3.27 crore, and Rs 1.12 crore for the fiscal years 2023, 2022, and 2021, respectively. Profit before tax for the same periods amounted to Rs 2.74 crore, Rs 56.53 lakhs, and a loss of Rs 9.27 lakhs. The company's financial performance positions it among listed peers such as MAS Financial Services Ltd, Arman Financial Service Ltd, Apollo Finvest (India) Ltd, CSL Finance Ltd, and Ugro Capital Ltd, as detailed in the DRHP.

The IPO, valued at Rs 34.30 crore, comprises a fresh issue of 67,25,000 equity shares, with no offer for sale (OFS) component. IBL Finance plans to utilize the net proceeds for general corporate purposes and expanding the Tier-I capital base, anticipating future capital needs stemming from asset and business growth.

The company's promoters, Manish Patel, Piyush Patel, and Mansukhbhai Patel, are at the helm of this ambitious venture. The IPO process timeline includes the finalization of the basis of allotment on Friday, January 12, with refunds scheduled for Monday, January 15. Shares will be credited to the demat accounts of allottees on the same day, and listing on NSE SME is expected on Tuesday, January 16.

The book running lead manager for the IBL Finance IPO is Fedex Securities Pvt Ltd, and Link Intime India Private Ltd serves as the registrar. The IPO's grey market premium is currently at Rs 0, indicating that shares are trading at their issue price of Rs 51 per share with no premium or discount, as reported by investorgain.com.