Finbud Financial, a prominent loan aggregation platform, made a remarkable entry onto the NSE SME. Today, with its shares listing at a significant premium and swiftly hitting the upper circuit. This strong debut has brought substantial gains to its initial public offering (IPO) investors, underscoring the market's positive sentiment towards the company's business model and financial health. The IPO, which was open for subscription from November 06-10, had already. Garnered an impressive response from investors, being oversubscribed more than four times.
Stellar Listing Performance
The shares of Finbud Financial, issued at an IPO price. Of ₹142 each, commenced trading on the NSE SME at ₹157. 00. This opening price represented a healthy listing gain of 10. 56% for IPO investors right from the start. The positive momentum continued unabated, with the stock quickly climbing further to reach its upper circuit limit of ₹164. 85. At this level, IPO investors are now sitting on a comfortable profit of 16. 09%, turning their initial investment into a lucrative venture. This immediate surge highlights the strong demand and confidence in Finbud Financial's future prospects.
Strong IPO Subscription Details
The initial public offering of Finbud Financial, valued at ₹71. 68 crore, witnessed an overwhelming response across all investor categories. The IPO was subscribed an impressive 4. 43 times overall, indicating significant investor interest. Specifically, the portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 4. 33 times (excluding anchor investors), while Non-Institutional Investors (NIIs) showed even greater enthusiasm, subscribing to their allocated portion 8, while 38 times. Retail investors also participated actively, with their segment being subscribed 2. 80 times. This broad-based demand was a clear precursor to the strong listing performance seen today.
Strategic Utilization of IPO Funds
The IPO involved the issuance of 50,48,000 new equity shares, each with a face value of ₹10. The capital raised through this offering is earmarked for several strategic initiatives aimed at bolstering Finbud Financial's growth and operational efficiency. A sum of ₹15, while 00 crore is designated for investment in its wholly-owned subsidiary, LTCV Credit Private Limited. Also, ₹17. 75 crore will be allocated towards business development and marketing activities to expand its reach and client base. The company plans to work with ₹4. 03 crore for debt reduction, enhancing its financial stability. A substantial portion of ₹20. 90 crore is set aside to meet working capital requirements, ensuring smooth day-to-day operations. The remaining funds will be deployed for general corporate purposes, providing flexibility for future growth opportunities.
Overview of Finbud Financial's Business Model
Established in July 2012, Finbud Financial Services operates as a comprehensive loan aggregation platform, while its core business revolves around facilitating access to various loan products, including personal loans, business loans, and home loans, from a network of banks and Non-Banking Financial Companies (NBFCs). The platform empowers users to compare loan offers from multiple lenders, assisting them in identifying the most suitable and competitive loan products. Beyond comparison, Finbud Financial also manages the entire loan documentation process, streamlining the application journey for its clients, while upon successful loan approval, the company earns a commission from the respective lenders, forming its primary revenue stream.
Finbud Financial has demonstrated a consistently strong financial performance over the past few years, reflecting its strong business model and effective operational strategies. The company's net profit has shown remarkable growth, rising from ₹1. 83 crore in Fiscal Year 2023 to ₹5. 66 crore in FY2024, and further escalating to ₹8. 50 crore in FY2025. Concurrently, its total income has expanded at a compound annual growth rate (CAGR) exceeding 28%, reaching an impressive ₹223. 50 crore. For the current fiscal year, specifically from April to July 2025, Finbud Financial has already reported a net profit of ₹3. 33 crore and a total income of ₹85. 82 crore, indicating continued positive momentum. As of the end of July 2025, the company maintained a healthy financial position with total debt amounting to ₹20. 48 crore and substantial reserves and surplus of ₹25, while 31 crore, providing a solid foundation for future expansion.
