IBL Finance Limited was incorporated on August 03, 2017, as IBL Finance Private Limited. In FY 2019, the company started its lending operations to self-employed professionals and small business entrepreneurs. In FY 2020, they transitioned to a fintech-based financial services platform. They started operating as a technology-driven fintech company, utilising technology and data science to facilitate quick and easy lending.
Through its mobile app, the company offers almost 100% digital personal loans specifically designed to cater to the needs of the underserved Indian population. Operating under the brand "IBL: Instant Personal Loan," the company disbursed 1,63,282 personal loans amounting to ₹7,105.44 lakh up to March 31, 2023. As of the same date, the personal loan business had an AUM of ₹1461.18 lakh, disbursing 1,22,078 personal loans amounting to ₹5234.70 lakh, with an average ticket size of approximately ₹4500. The average tenor of outstanding loans at the end of FY 2023 is 5 months.
The company's digital lending process, featuring a quick application, approval in under 5 minutes, and disbursement within 24 hours, is considered a key differentiator driving business growth. The personal loans are repaid through EMI over the loan tenure. The company's diverse range of loan sizes and tenors caters to various use cases, including planned personal expenses, emergency medical expenses, and short-term business needs.
In recent years, India's financial services sector has witnessed substantial growth, which is anticipated to persist. The private wealth management industry in India demonstrates significant potential, with projections indicating approximately 6.11 lakh High Net Worth Individuals (HNWIs) by 2025. This trajectory positions India as the world's 4th largest private wealth market by 2028. This outlook can be a positive opportunity for IBL Finance Limited.
IBL Finance Limited IPO Details
IBL Finance Limited IPO Date
IBL Finance Limited’s IPO will open on January 9, 2024, and close on January 11, 2024. The IPO will be listed on the NSE Emerge on January 16, 2024.
IBL Finance Limited IPO Price Band
IBL Finance Limited is a fresh IPO of 67,25,000 shares, aggregating ₹34.30 crore. The price of the IPO is ₹51 per share.
IBL Finance Limited IPO Lot Size
IBL Finance Limited’s IPO lot size is 2,000 shares.
IBL Finance Limited IPO Objectives
The objectives of IBL Finance Limited's IPO are listed below:
- Augmenting the company’s Tier-I capital base to meet their future capital requirements emerging out of the growth of the business and asset.
- For general corporate purposes.
Peer Details
As per DRHP, the listed peers whose business portfolio is comparable to the company are as follows:
- MAS Financial Services Limited
- Arman Financial Service Limited
- Apollo Finvest (India) Limited
- CSL Finance Limited
- Ugro Capital Limited
How To Check the IBL Finance Limited Allotment Status?
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- Log in to the Angel One app
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Contact Details of IBL Finance Limited IPO
- Registered office: Shop-151, Silver Stone Arcade, Near. Kantheriya Hanuman Temple, OP-34/A+B+C+D, FP-50, Singanpore, Causeway Road, Katargam, Surat - 395004, Gujarat, India.
- Phone: +91 9828116900
- E-mail: compliance@iblfinance.in
Company Financials
| Financial year ((₹ lakh)) | Year ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Total Revenue | 1,333.13 | 327.08 | 112.59 |
| Profit After Tax (PAT) | 192.83 | 42.73 | 9.88 |
| Net Worth | 2048.74 | 355.47 | 312.73 |
| Total Borrowings | 9.12 | 640.58 | - |
| EPS (in ₹) | 1.15 | 0.29 | 0.07 |
Know before investing
Strengths
2The company adopts a mobile-first, app-only approach for its personal loans, allowing it to (a) serve the digitally connected Indian population, (b) eliminate intermediaries and directly reach customers in tier-1 cities and beyond, and (c) provide a self-directed purchasing experience with one of the industry's shortest turnaround times.
The company presently functions through its registered office in Surat, Gujarat, and maintains a digital presence in approximately eight states across India. There are plans to expand business operations by delving deeper into existing markets, attracting new customers, particularly in underserved areas, and venturing into new regions nationwide with lower finance company penetration.
Risks
2The company's financial performance faces heightened susceptibility to interest rate volatility. Failure to effectively manage interest rate risk in the future may negatively impact the net interest margin, subsequently affecting the business and financial condition of the company.
The company’s technology-driven underwriting, risk management, and collection processes may encounter challenges in adequately identifying, monitoring, or mitigating risks in their lending operations.
