MS Dhoni-backed Finbud Fin Services gets NSE nod for SME IPO

New Delhi: MS Dhoni-backed Finbud Financial Services, a phygital lending enabler, on Thursday said it has received in-principle approval from NSE Emerge to float its SME initial public offering (IPO).

"Finance Buddha (Finbud Financial Services Ltd), India's leading phygital lending enabler, has received in-principle approval from NSE Emerge to launch its SME IPO," the company said in a statement.

The initial share sale is entirely a fresh issue of 50.48 lakh equity shares with a face value of Rs 10 each, as per the draft red herring prospectus filed by Finbud Financial Services in July this year.

Proceeds from the issue will be used by the company towards working capital requirements, investment in subsidiary LTCV Credit Pvt Ltd, funding for business development and marketing activities and repayment of debt.

The balance will be utilised towards general corporate purposes.

Bengaluru-based Finbud Financial Services, the parent company of Finance Buddha, was founded in 2012 by Vivek Bhatia, Parth Pande and Parag Agarwal.

The firm counts noted investor Ashish Kacholia, the MS Dhoni Family Office and Shankar V, founder of CAMS, among its backers, underlining confidence in its technology-enabled, high-trust approach to retail credit.

"As we move towards IPO, our focus will remain on financial discipline, expanding our presence across markets, and strengthening the trust we have built with our customers and partners," said Parag Agarwal, Co-founder, Finance Buddha.

SKI Capital Services is the sole book-running lead manager, while Skyline Financial Services is the registrar for the IPO.