Finance Buddha Completes Anchor Book for SME IPO, Raises Rs 20.4 Crore

Finance Buddha, also known as Finbud Financial Services Limited, has successfully completed the allocation for its anchor book ahead of its SME IPO launch, securing Rs 20.4 crore. This pre-IPO fundraising round garnered significant interest, with the anchor portion being subscribed 1.6 times. Prominent investor Ashish Kacholia, who already holds a substantial stake, led the anchor round by investing about Rs 7.17 crore through his entity Bengal Finance & Investment. Bandhan Small Cap Fund also participated with an investment of approximately Rs 6.17 crore, marking its first anchor investment in an SME IPO. The remaining Rs 7 crore was contributed by seven other participants, including domestic and global portfolio investors, who invested around Rs 1 crore each. The main IPO will involve a fresh issue of 50.48 lakh shares, with a price band set between Rs 140 and Rs 142 per share. The public subscription period is scheduled to begin on November 6 and conclude on November 10. Finance Buddha operates as a 'phygital' retail loan marketplace, using technology-driven distribution channels to connect borrowers with financial institutions. The company's existing backers include Ashish Kacholia and the MS Dhoni Family Office. The funds raised from the IPO are earmarked for enhancing its technology infrastructure, expanding its network of agents, and increasing its presence in new markets.

**Impact** This news is significant as a strong anchor book subscription often signals positive investor sentiment for the upcoming IPO. It indicates institutional confidence in Finance Buddha's business model and growth prospects, potentially leading to a successful listing and positively influencing investor interest in other SME IPOs. However, the broader SME segment has seen volatility, making the public subscription crucial. **Impact Rating**: 7/10

**Difficult Terms Explained**: * **SME IPO**: An Initial Public Offering (IPO) for Small and Medium-sized Enterprises. These are typically listed on specialized exchanges or segments (like NSE SME or BSE SME) designed for smaller companies. * **Anchor Book Allocation**: A process in IPOs where a portion of the shares is allocated to institutional investors (like mutual funds, FPIs, etc.) before the public issue opens. This helps build confidence and price discovery for the IPO. * **Subscribed**: Indicates the demand for shares compared to the number of shares offered. A subscription of 1.6 times means there was demand for 1.6 shares for every 1 share available. * **Domestic and Foreign Portfolio Investors (FPIs)**: These are institutional investors who invest in financial assets like stocks and bonds in a country other than their own. * **Phygital**: A business model that combines physical (brick-and-mortar) and digital (online) elements to provide a seamless customer experience. * **Fresh Issue**: When a company issues new shares to raise capital. The money raised goes directly to the company.