February 18, 2024
IBL Finance Makes Decent Debut on NSE SME Platform
Stock Markets Finance Trading

IBL Finance Makes Decent Debut on NSE SME Platform

IBL Finance Makes Decent Debut on NSE SME Platform

IBL Finance Makes Decent Debut on NSE SME Platform

IBL Finance, after a successful subscription period for its SME IPO, made a noteworthy debut on the National Stock Exchange (NSE) SME platform. The share price commenced trading at ₹56 apiece, a 10% premium over the issue price of ₹51 per share. In the initial trading, the stock quickly rose to ₹58.80.

The SME IPO, valued at ₹33.41 crore, was open for subscription from January 9 to January 11, 2024, with a price band of ₹51 per share. The offering comprised a fresh issue of 6,550,000 equity shares.

With an overall subscription of 17 times, the IPO received strong interest, particularly from retail investors, whose portion was oversubscribed 24 times. Non-institutional buyers also demonstrated a decent response, subscribing to 9.94 times their allotted portion.

Under its personal loan lending business, IBL Finance offers instant personal loans up to ₹50,000 with tenors of up to 12 months through an entirely digital, mobile app-only process. As of March 31, 2023, the company disbursed 1,63,282 personal loans amounting to ₹71 crore.

IBL Finance joins the list of listed peers in the SME segment, including MAS Financial Services, Arman Financial Service, Apollo Finvest (India), CSL Finance, and Ugro Capital.

Financially, IBL Finance reported revenue growth from ₹112.59 lakh in FY21 to ₹327.08 lakh in FY22 and further to ₹1,333.13 lakh in FY23. After a net loss of ₹9.88 lakh in FY21, the company achieved a net profit of ₹42.73 lakh in FY22, which increased to ₹192.83 lakh in FY23, showcasing a positive turnaround.

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