IF
ClosedSMEFinancial Services · Non-Banking Financial Company (NBFC) / Digital Lending
IBL Finance Limited
IBLFL·₹51·Opens 2024-01-09
★★★☆☆3/5
🔗 Official WebsitePrice Band: ₹51
Issue Size: 33.405
About the Company
What does this company do?
IBL Finance Limited is a non-banking financial company providing digital lending and microfinance services. The company operates through digital platforms offering loans to individual borrowers and small businesses. The company has grown its AUM (Assets Under Management) significantly and operates multiple branches acr…
IPO Details
Issue parameters, key dates and structure.
Total Issue Size
33.405
6550000
Fresh Issue
33.405
6550000
Proceeds go to company
Reservation Structure
Market Maker Reservation
5.04%
330000
Reserved for Market-hub Stock Broking Private Limited
Products & Brands
Key offerings and brand portfolio of the company.
Digital Lending Platform: Technology-enabled lending platform offering microfinance and personal loans to individual borrowers and small businesses with digital acquisition and documentation capabilities
Financial Performance
P&L, Balance Sheet and Cash Flow — all figures in ₹ Crores.
| Particulars (₹ Cr) | FY2023 (Year ended 31 Mar 2023) |
|---|
All figures in ₹ Crores (INR). Data sourced from DRHP/RHP.
Key Financial Ratios
Valuation and profitability metrics at the IPO price.
EPS — Basic (₹)
2.65
H1 FY2024
EPS — Diluted (₹)
2.65
H1 FY2024
P/E Ratio
19.25
At upper band of 51, based on H1 FY2024 EPS of 2.65
RoNW (%)
5.56
H1 FY2024
NAV per Share (₹)
47.73
Pre-issue (based on H1 FY2024)
Debt/Equity
0.004
H1 FY2024
EBITDA Margin (%)
38.83
H1 FY2024
PAT Margin (%)
24.48
H1 FY2024
Revenue CAGR
306.79
FY2022 to FY2023 YoY growth
Peer Comparison
Listed peers in the same industry — compare valuation and scale.
| Company | Exchange | Market Cap | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROE |
|---|---|---|---|---|---|---|
| MAS Financial Services Limited | — | — | 98783.00 | 20582.00 | — | 15.25% |
| Arman Financial Service Limited | — | — | 42390.12 | 9381.13 | — | 25.65% |
| Apollo Finvest (India) Limited | — | — | 4438.35 | 1007.64 | — | 24.06% |
| CSL Finance Limited | — | — | 11723.69 | 4562.84 | — | 12.59% |
| Ugro Capital Limited | — | — | 65645.37 | 3977.64 | — | 4.04% |
* Peer data extracted from DRHP. All figures in ₹ Crores unless stated. P/E based on latest available earnings.
Objectives of the Issue
How the company intends to use the IPO proceeds.
⚠
To strengthen the capital base of the company to meet regulatory requirements and support business expansion
1
To fund expansion of lending operations, branch network, technology infrastructure, and working capital
2
To repay outstanding borrowings and reduce leverage
SWOT Analysis
Internal strengths & weaknesses; external opportunities & threats.
💪Strengths
Exceptional revenue growth of 306.79% in FY2023 with strong market traction
Expanding customer base growing from 1055 to 16384 customers demonstrating market acceptance
Technology-enabled lending platform with scalable digital acquisition model
Healthy profitability with PAT margins improving to 14.49% in FY2023
Low debt levels with total borrowings of only 7.51 lakhs post-IPO
⚠️Weaknesses
Rising NPA ratio of 5.19% in FY2023 from 2.48% in FY2022 indicating deteriorating asset quality
Relatively small scale compared to established competitors with AUM of only 1461.18 lakhs
Limited operational history with company incorporated in 2017 and recent conversion to public limited company
High provision coverage ratio of 25.02% showing significant provisioning burden
Low capital adequacy ratio (CRAR) of 1.14x provides limited growth cushion
🚀Opportunities
Growing microfinance and digital lending market in India with significant untapped potential
Expansion into new geographies and customer segments through branch network growth
Technology integration for cost optimization and improved customer acquisition
Cross-selling opportunities of complementary financial products
Strategic partnerships with other financial institutions and fintech players
🔥Threats
Intense competition from established NBFC and microfinance institutions
Regulatory changes affecting lending rates, capital requirements, and consumer protection norms
Economic slowdown impacting borrower repayment capacity and increasing default rates
Technology disruption and cybersecurity risks in digital lending platforms
Concentration risk with significant customer base dependency on specific geographic regions or borrower segments
Competitive Strengths
Key advantages highlighted in the DRHP.
✓
Strong revenue growth with 306.79% growth in FY2023 compared to FY2022, demonstrating rapid business expansion
✓
Healthy profitability with PAT margin of 14.49% in FY2023 and improving EBITDA margins of 30.04%
✓
Significant growth in customer base from 1055 customers in FY2021 to 16384 customers in FY2023, showing strong market traction
✓
Technology-enabled lending platform with digital acquisition capabilities and scalable business model
✓
Expanding branch network from 1 branch in FY2022 to 7 branches by July 2023, supporting geographic expansion
Promoters & Shareholding
Pre & post-IPO shareholding pattern. Click a promoter card to learn more.
Promoters
Shareholding Pattern
85.55%63.29%
14.45%36.71%
PrePost
Key Risks
Material risk factors to consider before applying.
⚠
First public issue with no formal market history for shares; post-listing market price is uncertain
⚠
Rising NPAs with gross NPA ratio of 5.19% in FY2023 requires close monitoring of asset quality
⚠
Regulatory risks associated with non-banking financial company operations and compliance requirements
⚠
High leverage and capital adequacy ratio of 1.14x indicates limited cushion for future growth
⚠
Market competition from established microfinance and lending companies
⚠
Technology and cybersecurity risks inherent in digital lending platforms
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Should You Apply?
IBL Finance Limited is a digital lending NBFC showing exceptional revenue growth of 306.79% in FY2023 with expanding customer base and healthy profitability. The company operates a technology-enabled lending platform in the microfinance sector with operations across multiple branches. Trading at P/E of 19.25x on H1 FY2024 EPS of 2.65 and at NAV of 47.73, the IPO is attractively priced for a growth-stage fintech lender. However, rising NPAs (5.19% in FY2023) and low capital adequacy ratio (1.14x) require monitoring. Suitable for risk-taking investors seeking listing gains from emerging NBFC sector growth story.
⚠️ This is not investment advice. CheckIPO provides information for educational purposes only. Always consult a SEBI-registered financial advisor before investing.
IPO Timeline
Key milestones from opening to listing.
📅
IPO Opens
2024-01-09
🔒
IPO Closes
2024-01-11
🏛️
Listing
2024-01-16
Lead Managers & Registrar
Institutions managing the issue and handling allotment.
Book Running Lead Managers (1)
Fedex Securities
Registrar to the Issue
📋
Bigshare Services Private Limited
Registrar to the Issue
Company Details
Registered information and contact details.
Company Name
IBL Finance Limited
CIN
U65999GJ2017PLC098565
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
Contact Person
Dilipbhai Chauhan
Phone
9328116900
Website
https://iblfinance.in/