IBL Finance
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Jan 2024 – 11 Jan 2024
- Listing date
- 16 Jan 2024
- Face value
- ₹10 per share
- Issue price
- ₹51 per share
- Lot size
- 2,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹33.41 Cr
- Market cap at offer price
- ₹126 Cr
- Promoter holding
- 85.55% → 62.89% pre-issue → post-issue
- ISIN
- INE0O7401018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Shop-151, Silver Stone Arcade, Near., Kantheriya Hanuman Temple, OP-34/A+B+C+D, FP-50, Singanpore, Causeway Road, Katargam, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,30,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹51
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,02,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,04,000 |
| S-HNI (max) | 9 | 18,000 | ₹9,18,000 |
| B-HNI (min) | 10 | 20,000 | ₹10,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.06 | 1.46 |
| P/E (×) | 48.11 | 34.93 |
| Price to book (×) | 4.18 | — |
| Market cap | — | ₹126 Cr |
Key performance indicators
- Return on net worth
- 9.41%
- ROCE
- 18.88%
- Debt / equity
- 0.00
- PAT margin
- 14.49%
- NAV per share
- ₹12.20
- Price to book
- 4.18
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About IBL Finance
IBL Finance Limited was incorporated on August 03, 2017 as a private limited company and converted to a public limited company on May 22, 2023. The company commenced lending business to self-employed professionals and small business entrepreneurs in FY 2019, and subsequently migrated to a fintech-based financial services platform from FY 2020 onwards. The company provides instant personal loans through its mobile application (IBL: Instant Personal Loan App) using a 100% digital process. The company generates revenue primarily from interest income on personal loans and has grown its loan portfolio from ₹262.78 lakhs as of March 31, 2021 to ₹1,461.18 lakhs as of March 31, 2023. It operates as a non-systematically important non-deposit taking NBFC regulated by the RBI.
Company Analysis
from RHPIBL Finance Limited is a technology-driven fintech company offering instant personal loans through a 100% digital platform leveraging technology and data-science in the non-banking financial services sector.
IBL Finance Limited was incorporated on August 03, 2017 as a private limited company and converted to a public limited company on May 22, 2023. The company commenced lending business to self-employed professionals and small business entrepreneurs in FY 2019, and subsequently migrated to a fintech-based financial services platform from FY 2020 onwards. The company provides instant personal loans through its mobile application (IBL: Instant Personal Loan App) using a 100% digital process. The company generates revenue primarily from interest income on personal loans and has grown its loan portfolio from ₹262.78 lakhs as of March 31, 2021 to ₹1,461.18 lakhs as of March 31, 2023. It operates as a non-systematically important non-deposit taking NBFC regulated by the RBI.
Objects of the Issue
- Augmenting company's Tier-I capital base to meet future capital requirements arising out of growth of business and asset ₹2,397.19 Lakhs p.17
- General corporate purposes ₹768.31 Lakhs p.17
- Augmenting our Company's Tier – I capital base to meet our Company's future capital requirements, arising out of the growth of our business and asset ₹2,397.19 Lakhs p.76
- General corporate purposes ₹768.31 Lakhs p.77
- Not explicitly stated in this document part
Issue Structure
- Total Issue
- ₹3,340.50 Lakhs
- Fresh Issue
- 65,50,000 Equity Shares of face value ₹10/- each aggregating ₹3,340.50 Lakhs
- Offer for Sale
- NA
- Price Band
- ₹51 per Equity Share (Fixed Price Issue)
- Lot Size
- 2000 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue primarily through interest income on personal loans extended to customers. As of July 31, 2023, interest income from financing activities constituted 50.41% of total revenue. The company employs technology-driven underwriting and risk management processes to assess creditworthiness and disburse loans through its digital mobile application. The company funds its lending operations through inter-corporate deposits, unsecured loans, and equity financing.
Business Segments
SWOT Analysis
- • Technology-driven fintech platform with digital lending capability(p.17)
- • Strong promoter control and alignment (85.55% shareholding)(p.36)
- • Growth in loan portfolio and customer base(p.27)
- • Achieved profitability in recent periods(p.18)
- • Improved net interest margins through lending operations(p.21)
- • Mobile-first digital lending platform with fast onboarding(p.97)
- • Strong credit quality with advanced underwriting using 500+ data points(p.97)
- • Innovative cohort-based pricing and risk segmentation approach(p.97)
- • Significant loan portfolio growth and disbursement volumes(p.97)
- • Advanced data science-driven underwriting with 500+ data points(p.106)
- • Use of AI/ML for credit accessibility beyond traditional credit scores(p.106)
- • Experienced management team with long-standing industry expertise(p.106)
- • Robust cohort-based collections model for efficient debt recovery(p.106)
- • Strong financial performance with growing AUM and disbursements(p.106)
- • High credit quality portfolio with 91% customers having Equifax score >700(p.109)
- • Comprehensive fraud detection using face recognition and geotagging(p.109)
- • RBI-certified NBFC with valid CoR for lending operations(p.164)
- • Fully digital personal lending platform enabling scalable operations(p.164)
- • Strong profitability trajectory with growing margins(p.160)
- • Substantial capital base relative to leverage(p.189)
- • No material fraud or willful default history(p.210)
- • High and increasing non-performing asset levels(p.21)
- • Unsecured loan portfolio with high collection risk(p.26)
- • Limited operational history and experience in fintech(p.23)
- • Negative cash flows from operating activities in prior years(p.23)
- • Prior loss history(p.24)
- • Dependence on third-party cloud and data centre providers(p.22)
- • Limited experience and legal proceedings against promoters and company(p.20)
- • All offices and branches in rental premises with renewal uncertainty(p.30)
- • Company law non-compliance history(p.30)
- • Limited employee base and retention risks(p.32)
- • High reliance on a limited product offering (personal loans only)(p.97)
- • Recent transition from traditional lending to fintech model with limited operational history(p.97)
- • Not yet listed company subject to new compliance burden as listed entity(p.42)
- • High Gross NPA at 5.02% for Jul 2023 period(p.104)
- • Geographic concentration risk with Gujarat and Maharashtra dominating portfolio(p.104)
- • Limited diversification - focused primarily on personal loans(p.108)
- • Lack of insurance coverage for the company(p.111)
- • Small employee base of only 82 employees(p.111)
- • High loan loss provisions relative to revenue—major cost headwind(p.192)
- • Elevated NPA ratio indicating credit quality deterioration(p.189)
- • Significant dependence on inter-corporate deposits as funding source(p.197)
- • Limited branch infrastructure—only 7 branches as of July 2023(p.189)
- • Regulatory non-compliance history with RBI regarding director disclosures(p.202)
- • Expansion into new geographies and branch network(p.27)
- • Growth in digital lending and fintech adoption in India(p.17)
- • Expand loan portfolio and customer reach through hybrid model(p.27)
- • Diversify product portfolio and market offerings(p.27)
- • Leverage capital raised to augment lending capacity(p.17)
- • Large underserved Indian population seeking digital personal loans(p.97)
- • Expansion to higher ticket sizes and diverse use cases(p.97)
- • Growth in India's fintech lending sector with rising digital adoption(p.96)
- • Tier-I capital enhancement through IPO proceeds for scaling AUM(p.76)
- • Expansion to underserved markets across India(p.107)
- • Introduction of new loan products (two-wheeler, B2B, small business loans)(p.108)
- • Co-lending arrangements with banks to reduce risk and access priority sector(p.108)
- • Cross-selling opportunities to existing customer base(p.108)
- • Distribution of other financial products to customers with good repayment history(p.108)
- • Underserved SME/personal loan market with growing digital adoption(p.190)
- • Rapid revenue growth trajectory—307% YoY to FY2023(p.194)
- • Expansion into new geographic markets—recent branch openings in 7 states(p.217)
- • Attractive product-market fit with repeat customer lending—38% repeat disbursals(p.189)
- • Conversion to public company and listing on NSE Emerge enables capital raising(p.191)
- • Intense competition from banks, other NBFCs and fintech companies(p.26)
- • Interest rate volatility and cost of funds risk(p.21)
- • Economic slowdown and recession risk in India(p.35)
- • Regulatory changes by RBI affecting NBFC operations(p.24)
- • RBI inspection findings and penalty risk(p.24)
- • Risk of borrower defaults due to economic hardship(p.21)
- • Dependence on funding sources and liquidity constraints(p.23)
- • Impact of COVID-19 and other pandemics on business(p.30)
- • Insolvency and Bankruptcy Code impact on recovery(p.31)
- • Inflation and rising operational costs(p.36)
- • Political instability and terrorist threats(p.37)
- • Foreign exchange rate fluctuations(p.38)
- • Regulatory risk from RBI capital adequacy requirements(p.76)
- • Equity share dilution risk from future fundraising(p.41)
- • Market price volatility and circuit breaker restrictions on trading(p.42)
- • Competitive risk from intense NBFC and fintech lending competition(p.82)
- • Labour law compliance risks affecting operational flexibility(p.42)
- • Intense competition from fintech companies, microfinance firms and traditional banks(p.110)
- • Regulatory constraints on NBFC sector including capital adequacy requirements(p.110)
- • Dependence on external technology vendors for platform support(p.110)
- • RBI lending guidelines limiting bank financing to certain NBFC activities(p.120)
- • Income concentration risk - over 18% annual interest rates charged on loans(p.108)
- • Intense competition from fintech, NBFCs and traditional banks in personal lending(p.192)
- • Interest rate volatility affecting net interest margin(p.191)
- • Credit market liquidity and cost-of-funds constraints(p.191)
- • RBI regulatory tightening and compliance requirements(p.202)
- • Economic downturn risk impacting personal loan demand and defaults(p.191)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Manish Patel | Promoter | 10.52% | — |
| Piyush Patel | Promoter | 15.95% | — |
| Mansukhbhai Patel | Promoter | 10.66% | — |
| Manishbhai M Patel HUF | Promoter | 15.29% | — |
| Mansukhbhai K Patel HUF | Promoter | 5.24% | — |
| Manish Patel | Promoter | 10.52% | 7.73% |
| Piyush Patel | Promoter | 15.95% | 11.72% |
| Mansukhbhai Patel | Promoter | 10.66% | 7.84% |
| Manishbhai Mansukhbhai Patel - HUF | Promoter | 15.29% | 11.24% |
| Mansukhbhai Kunvarjibhai Patel - HUF | Promoter | 5.24% | 3.85% |
| Jayaben Patel | Promoter Group | 7.79% | 5.73% |
| Hinaben Patel | Promoter Group | 10.04% | 7.38% |
| Rupalben Patel | Promoter Group | 4.37% | 3.21% |
| Piyush Mansukhbhai Patel - HUF | Promoter Group | 4.46% | 3.28% |
| Chandubhai Miyani | Promoter Group | 1.10% | 0.81% |
| Kakdiya Shilpaben | Promoter Group | 0.13% | 0.10% |
| Manish Patel | Promoter | — | — |
| Piyush Patel | Promoter | — | — |
| Mansukhbhai Patel | Promoter | — | — |
| Manishbhai Mansukhbhai Patel HUF | Promoter Group | — | 15.29% |
| Mansukhbhai Kunvarjibhai Patel HUF | Promoter Group | — | 5.24% |
| Manish M. Patel | Promoter/Chairman and Managing Director | 10.52% | — |
| Piyush M. Patel | Promoter/Whole-Time Director | 15.95% | — |
| Mansukhbhai K. Patel | Promoter/Whole-Time Director | 10.66% | — |
| Manishbhai M. Patel HUF | Promoter Group | 15.29% | — |
| Mansukhbhai K. Patel HUF | Promoter Group | 5.24% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.