All You Need To Know About The IIFL Finance Ltd. IPO - Issue Open Date, Price Band & More
Exciting news for those looking to invest in the stock market! The IIFL Finance Ltd. is set to go public in a few days, with an IPO that allows all kinds of investors to take part and potentially benefit from its success. In this article, we’ll tell you all you need to know about the upcoming IPO - including the issue open date, price band and more.
Introduction to IIFL Finance Ltd.
IIFL Finance Ltd. is an Indian diversified financial services company headquartered in Mumbai, India. The company was formerly known as India Infoline Finance Limited. It offers a range of products and services including loans against property, home loans, business loans, SME loans, two wheeler loans, used car loans, credit cards, and deposit products.
The company is planning to list its shares on the stock exchange through an initial public offer (IPO). The IIFL Finance Ltd. IPO is scheduled to open on Jan 06, 2023 and will close on Jan 18, 2023. The price band for the IPO has been set at Rs 1000 per share.
IIFL Finance is the listed holding company of the IIFL Finance group and is registered as a systemically important non-deposit taking non-banking financial company NBFC. The group offers various retail lending products, including gold loans, home loans, LAP, business loans and microfinance loans which are the core segments and form 93% of the AUM while the rest comprises of capital market-based lending (margin funding and loans against shares) and construction and developer finance. As of March 2022, promoters held 24.9% stake in IIFL Finance, while 22.3% is held by Mr Prem Watsa-owned Fairfax Holdings and 7.8% by CDC Group PLC.
Overview of the IPO
All eyes are on the IIFL Finance Ltd. IPO which is set to hit the markets on September 29, 2020. This will be the first public issue by a non-banking finance company (NBFC) in over three years and is expected to raise Rs 3,000 crore.
The IIFL Finance Ltd. IPO will have a price band of Rs 519-520 per share and an offer size of 5,811,465 equity shares. The lot size for the IPO has been fixed at 35 equity shares and bids can be made in multiples of this number. The minimum order quantity (MOQ) for the retail investors has been kept at 1 lot (i.e., 35 equity shares).
IIFL Finance Ltd is one of India's leading diversified financial services companies offering a wide range of products and services including investment banking, asset management, wealth management, retail finance & insurance broking services.
With over two decades of experience in meeting the complex financial needs of its clients, IIFL Finance Ltd has built a strong pan-India presence with offices located in major cities across India as well as overseas branches in Dubai and Mauritius.
Issue Open Date, Close Date & Listing Date
If you are planning to apply for the IIFL Finance Ltd. IPO, it is important to know the issue open date, close date and listing date. The issue open date is the first day that the public can submit their applications for the IPO. The close date is the last day that applications will be accepted. The listing date is when the shares of the company will start trading on the stock exchange.
Face Value, Price Band & Issue Size
When it comes to IPOs, there are a few key terms that you need to be aware of. Face value, price band and issue size are three of the most important factors to consider when looking at an IPO.
Face value is the original value of a security before it starts trading on the stock market. For example, if a company has an IPO with a face value of Rs 10 per share, that is the price at which the shares will be initially offered to investors.
The price band is the range within which shares can be bought and sold. For example, if the price band for an IPO is Rs 9-10 per share, that means that shares can be bought at any price between Rs 9 and Rs 10. The issue size is the total number of shares being offered for sale in an IPO. For example, if the issue size for an IPO is 1 crore shares, that means that 1 crore shares will be up for grabs during the IPO period.
When considering an IPO, it is important to look at all three of these factors - face value, price band and issue size - in order to get a complete picture of what you are getting into.
Issue Type & Listing Date’s Open Price, High Price
If you’re planning to apply for the upcoming IIFL Finance Ltd. IPO, here’s everything you need to know about the issue – from the open and closing dates, to the price band and more.
The IIFL Finance Ltd. IPO is scheduled to open on Jan 6, 2023 and close on Jan 18, 2023. The price band for the issue has been set at Rs 1000 per share.
The company plans to raise up to Rs 3,461 crore through the sale of new shares in the IPO. Of this amount, Rs 2,500 crore will be used to repay debt, while the remaining Rs 961 crore will be used for general corporate purposes.
IIFL Finance Ltd is a non-banking financial company (NBFC) that provides a range of financial products and services to retail and institutional customers in India. Some of its key products and services include loans against property, loan against securities, gold loans and vehicle finance loans.
Benefits of Investing in IIFL Finance Ltd.
If you are looking to invest in a company with a strong track record of growth and profitability, then IIFL Finance Ltd. is a good option to consider. Here are some of the key benefits of investing in IIFL Finance:
1. Strong financial performance: IIFL Finance has reported strong financial results over the last few years. For FY2017, the company reported a profit after tax (PAT) of Rs 1,325 crore, up 36% from the previous year. Its revenues have also grown steadily, from Rs 6,741 crore in FY2016 to Rs 8,293 crore in FY2017.
2. Experienced management team: IIFL Finance is led by an experienced management team that has a proven track record in growing the business and delivering shareholder value. The company's managing director and chief executive officer, Rashesh Shah, has been with IIFL since its inception in 1995 and has played a key role in its growth.
3. Diversified business model: IIFL Finance has a diversified business model with exposure to multiple segments of the Indian economy. This helps to mitigate risks and provides considerable growth potential going forward. The company's businesses include lending, investment banking, asset management, wealth management, and insurance broking.
4. Wide geographical reach: IIFL Finance has a wide geographical reach with operations across India as well as international markets such as Mauritius, Dubai, Singapore, and the United Kingdom. This gives it.
Risks Involved with Investing in IIFL Finance Ltd.
When it comes to investing in any company, there are always risks involved. When it comes to IIFL Finance Ltd., there are a few risks potential investors should be aware of before putting their money into the initial public offering (IPO).
Average, albeit improving, profitability
While CRISIL Ratings-adjusted return on managed assets RoMA; adjusted for upfront income from direct assignment DA improved to 1.4% for fiscal 2022 from 1.3% in fiscal 2021 0.9% in 2020, it remains modest. Including income from DA, RoMA stood at 2.1% for fiscal 2022 1.6% for fiscal 2021. On an absolute basis, IIFL Finance consolidated reported net profit of Rs 1,188 crore in fiscal 2022, up from Rs 761 crore in the previous fiscal and Rs 503 crore in fiscal 2020.
Earnings were supported by lower credit cost and higher upfront income from DA transactions. Credit cost provisions and write-offs average managed assets was 1.5% in fiscal 2022 compared with 2.4% in fiscal 2021. Elevated credit cost was mainly on account of Covid-19, which led to an increase in the delinquency levels. The company is increasingly looking at the partnership model, and co-lending is expected to contribute to improving profitability as this book materially scales up over the medium term.
Secondly, the company is primarily focused on lending money to small businesses in India. While this can be a lucrative market, it also means that IIFL Finance is more susceptible to economic fluctuations in India than companies with a more diversified portfolio.
Lastly, as with any lending institution, there is always the risk of non-payment by borrowers. While IIFL Finance does have some protections in place (such as collateral), there is always the possibility that borrowers will default on their loans, which could negatively impact the company's bottom line.
Investors should carefully consider these risks before investing in IIFL Finance Ltd.'s IPO.
How to invest in the IIFL FInance IPO?
Application process on Bonds India platform is simple and seamless.
Conclusion
The IIFL Finance Ltd. IPO is a great opportunity for investors to take advantage of the growing market and increase their wealth in the long run. With its competitive price band, strong fundamentals and attractive returns, it is certainly an IPO worth considering. We hope that this article has been helpful in providing you with all the information you need about this IPO so that you can make an informed decision on whether or not it would be suitable for your investment portfolio.
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