IPO structure and management
Up to 50% of the net issue is reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors (NIIs). SKI Capital Services is acting as both the book-running lead manager and market maker, while Skyline Financial Services is the registrar for the issue.
GMP flat
According to market trackers, Finbud Financial Services shares are commanding no premium in the grey market (GMP 0%) ahead of the issue opening. This indicates that the stock is expected to list near its issue price unless there is a surge in institutional demand during the subscription period.
About the company
Finbud Financial Services operates as a loan aggregator, helping customers compare and access personal, business, and home loans from various banks and non-banking financial companies (NBFCs). The company earns commissions from lending institutions upon successful loan disbursement.
Finbud leverages technology and data analytics to match borrowers with suitable loan products and assist in documentation. It has a strong network of agents and partnerships with multiple financial institutions.
Financial performance
The company has reported consistent growth in both revenue and profitability. Revenue rose 17% to Rs 223.5 crore in FY25, while net profit surged 50% to Rs 8.5 crore from Rs 5.7 crore in FY24.
Objects of the issue
The company plans to use the IPO proceeds for working capital needs (Rs 20.9 crore), investment in its wholly owned subsidiary LTCV Credit Pvt. Ltd. (Rs 15 crore), marketing and business development (Rs 17.75 crore), partial debt repayment (Rs 4.03 crore), and general corporate purposes.
With a flat grey market premium and moderate pricing, investors are expected to closely watch subscription trends over the next few days to gauge market sentiment.