Finance Buddha Gears Up for Rs 71.68 Crore SME IPO with Backing from Notable Investors
Finance Buddha, operating under Finbud Financial Services Ltd, is launching an SME IPO to raise Rs 71.68 crore through a fresh issue of 50,48,000 equity shares. The price band is set at Rs 140-142 per share, with subscription running from November 6-10 and listing on November 13 on NSE Emerge. The company, a hybrid loan distribution platform founded in 2012, operates across 30 states and 19,000 pincodes. Finance Buddha reported a total income of Rs 223.00 crore and a profit after tax of Rs 8.50 crore, with an EBITDA margin of 6.70%. Notable investors include Ashish Kacholia, MS Dhoni Family Office, and Shankar V. The IPO proceeds will be used for expansion, technology upgrades, and entering new markets.
*this image is generated using AI for illustrative purposes only.
Finance Buddha, operating under Finbud Financial Services Ltd, is set to make its mark in the capital markets with an upcoming SME IPO. The company aims to raise Rs 71.68 crore through a fresh issue of shares, attracting attention with its impressive financial performance and backing from high-profile investors.
IPO Details
| Particulars | Details |
|---|---|
| Issue Size | Rs 71.68 crore |
| Fresh Issue | 50,48,000 equity shares |
| Price Band | Rs 140 - 142 per share |
| Subscription Period | November 6 - 10 |
| Listing Date | November 13 |
| Listing Platform | NSE Emerge |
Company Overview
Finance Buddha, founded in 2012, has established itself as a hybrid loan distribution platform with a significant presence across India. The company's operations span:
- 30 states
- 19,000 pincodes
Financial Highlights
| Metric | Value |
|---|---|
| Total Income | Rs 223.00 crore |
| Profit After Tax | Rs 8.50 crore |
| EBITDA Margin | 6.70% |
| Weighted Average RONW (3 years) | 32.78% |
Notable Investors
The company has garnered support from prominent investors, including:
- Ashish Kacholia
- MS Dhoni Family Office
- Shankar V
Utilization of IPO Proceeds
Finance Buddha plans to allocate the funds raised from the IPO towards:
- Expansion of operations
- Upgrades to the technology platform
- Entering new markets
This strategic allocation of funds indicates the company's focus on growth and technological advancement in the competitive fintech landscape.
Market Position
As a hybrid loan distribution platform, Finance Buddha operates in a rapidly evolving sector of the Indian financial market. The company's extensive reach across multiple states and pincodes suggests a strong market presence and potential for further growth.
The upcoming IPO presents an opportunity for investors to participate in the growth story of a fintech company that has demonstrated solid financial performance. However, as with all investments, potential investors should conduct thorough research and consider their risk appetite before making investment decisions.
With the backing of notable investors and a clear strategy for utilizing IPO proceeds, Finance Buddha appears poised for its next phase of growth in the dynamic Indian financial services sector.
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