IBL Finance Limited IPO

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  1. Business Evolution:
    • The company started its lending business in the fiscal year ending March 31, 2019, focusing on self-employed professionals and small business entrepreneurs.
    • In the fiscal year 2020, there was a transition to a fintech-based financial services platform.
    • The company leverages technology and data science to streamline the lending process and make it quick and easy.
  2. Digital Lending Platform:
    • The company operates as a technology-driven fintech firm, utilizing a mobile app for its lending services.
    • The mobile app, known as “IBL: Instant Personal Loan,” offers instant personal loans of up to ₹50,000 through a 100% digital process.
    • Since the launch until March 31, 2023, the company has disbursed a significant number of personal loans, totaling ₹7,105.44 lakhs.
  3. Business Strategy:
    • The primary focus is on addressing the needs of the underserved Indian population by providing digital personal loans.
    • The business model caters to the digitally connected Indians, and the average tenor of outstanding loans at the end of Fiscal 2023 is 5 months.
  4. Key Features of the Lending Process:
    • The digital lending process is considered a key differentiator for business growth.
    • The company emphasizes a quick and efficient process, with loan application completion and approval within 5 minutes and loan disbursement within 24 hours.
    • Personal loans are repaid through equal monthly installments (EMI) over the tenure of the loan.
  5. Risk Management and Credit Quality:
    • The company places a strong focus on credit quality and pricing to ensure sustainable and profitable growth.
    • An underwriting platform aggregates data from various sources to generate credit reports with over 500 data points.
    • As of March 31, 2023, over 91% of personal loan customers had Equifax credit scores above 700.
  6. Cohort-Based Approach:
    • The company adopts an innovative cohort-based approach, segmenting customers based on factors such as yield, risk, ticket size, and acquisition cost.
    • This approach, combined with regular customer research and sophisticated data analytics, aims to offer tailored products and identify low-risk and profitable customer segments.
  7. Financial and Operational Metrics:
    • Revenue from operations has shown significant growth over the fiscal years, with ₹1330.52 lakhs in Fiscal 2023.
    • Profit before tax and net profit have also increased, indicating positive financial performance and profitability.

Objects of the IBL Finance Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards the following objects: i. Augmenting the company's Tier-I capital base to meet the company's future capital requirements, arising out of the growth of the business and asset; and ii. General corporate purposes.
DRHP of IBL Finance Limited IPO
RHP of IBL Finance Limited IPO

IBL Finance Limited IPO Details:

Open Date: Jan 09 2024
Close Date: Jan 11 2024
Total Shares: 6,725,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 34.30 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 51 Per Equity Share
Listing At: NSE Emerge
Listing Date: Jan 16 2024

Promoters And Management:

MANISH PATEL is the Chairman and Managing Director of the board of the Company. He has been associated with the Company since incorporation. He holds a Bachelor’s degree in Business Administration from Sikkim Manipal University. He was previously associated with Arihant Capital Markets Limited as sub-broker. Further, he has certificate of registration as sub-broker from the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992. He has more than 5 years of experience in the field of the business PIYUSH PATEL is the Whole-Time Director of the Company. He has been associated with the Company since incorporation. He is an under graduation but he has completed his senior secondary course from National Institute of Open Schooling. He has more than 5 years of experience in the field of the business. MANSUKHBHAI PATEL is the Whole-Time Director of the Company. He has been associated with the Company since incorporation. He holds a bachelor’s degree in Commerce from Gujarat University. He has more than 5 years of experience in the field of the business

Financials of IBL Finance Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
4M-FY24
Revenue from Operations 113 327 1,331 493
Other Income 0 0 3 0
Total Revenue 113 327 1,333 493
Employee benefits expenses 48 102 272 76
Provisions and Loan Losses 12 70 322 189
Other Expenses 55 85 337 66
EBITDA -2 70 402 162
Depreciation & Amortisation 6 5 5 3
Finance Cost 0.5 8 123 10
EBIT -9 65 397 159
OPM (%) -1.78% 21.40% 30.15% 32.89%
PBT -9 57 275 149
Tax 0.6 14 82 28.9
PAT -10 43 193 121
NPM (%) -8.78% 13.06% 14.46% 24.48%
No.of Shares 247.3 247.3 247.3 247.3
EPS -0.04 0.17 0.77 0.48

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
IBL Finance Limited 13 2 0.77 65.4 51 126
MAS Financial Services Limited 989 206 37.18 22.2 914 4,996
Arman Financial Service Limited 424 94 110.46 17.8 2,519 2,465
Apollo Finvest (India) Limited 44 10 27.02 43.0 1,100 410
CSL Finance Limited 117 46 22.01 19.4 441 1,005
Ugro Capital Limited 684 40 5.64 31.4 276 2,558
* All the data is as per FY23.

Lead Manager of IBL Finance Limited IPO:

  1. Fedex Securities Limited

Registrar of IBL Finance Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

IBL Finance Limited Shop-151, Silver Stone Arcade, Near. Kantheriya Hanuman Temple, OP-34/A+B+C+D, FP-50, Singanpore, Causeway Road, Katargam, Surat- 395004 Phone: 9828116900 Email: compliance@iblfinance.in Website: https://iblfinance.in/

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