Vaibhav Vyapaar Limited IPO — Subscription & GMP

Vaibhav Vyapaar is an RBI-registered non-banking finance company that makes small, unsecured personal loans through its LoanFront mobile app. Incorporated in Kolkata in 2009 and licensed as an NBFC in 2010, it was acquired by CapFront Technologies in 2019 and has run its lending on the LoanFront platform since. Its corporate office is in Bengaluru.

How it makes money

Borrowers — salaried and self-employed, many of them first-time and lower-income — apply, are scored and are paid out entirely within the app. The company grades customers from A to E and prices loans at an annual percentage rate of 30% to 86%, depending on the grade.

It earns in three ways:

• Fees and interest on loans it originates. Processing fees were the largest item in FY26 at ₹16.3 Cr, or 44% of revenue — more than interest income of ₹11.0 Cr.
• Co-lending. It originates loans alongside partner NBFCs and keeps 20% of each on its own book; the partner holds the other 80%.
• Technology services — licensing its app and platform to other NBFCs, worth ₹3.0 Cr in FY26.

Its loan book (AUM) stood at ₹81.2 Cr at July 31, 2026, up from ₹47.5 Cr in March 2025. Tamil Nadu, Karnataka, Telangana, Andhra Pradesh and Maharashtra account for 77% of it, and repeat customers bring in about three-quarters of revenue.

The numbers

• Revenue: ₹36.8 Cr in FY26, up 47% from ₹25.0 Cr in FY25 (₹25.3 Cr in FY24)
• Profit after tax: ₹1.97 Cr in FY26, against ₹1.48 Cr and ₹0.45 Cr; PAT margin 5.4%
• Return on net worth: 6.75% in FY26
• Asset quality: gross NPA 4.71% and net NPA 2.94% at March 2026, with ₹9.6 Cr of loans written off during the year
• Capital: net worth ₹29.2 Cr at March 2026 with debt at 1.6× equity. A ₹15 Cr rights issue in June 2026 lifted net worth to ₹47.2 Cr and brought debt down to 0.8× by July
• EPS: ₹1.22 for FY26, about 44× earnings at the top of the ₹51–54 band

The four months to July 2026 brought ₹18.0 Cr of revenue and ₹3.0 Cr of profit — already more profit than in all of FY26.

Where the money goes

The issue is entirely fresh — 77.96 lakh shares, about ₹42.1 Cr at the top of the band. ₹32 Cr goes to augmenting the capital base, the equity the RBI requires behind lending, which lets the loan book grow; the rest is for general corporate purposes. No existing shareholder is selling.

Worth knowing

• Credit losses are large next to profit. FY26 write-offs of ₹9.6 Cr compare with a profit of under ₹2 Cr. In high-rate unsecured lending, the gap between pricing and defaults is the business.
• At about 44× FY26 earnings, the issue is priced above the filing's peer average of 26.3× (Paisalo Digital and Apollo Finvest).
• Shareholders subscribed to the June 2026 rights issue at ₹35 a share, against the ₹51–54 band.
• Digital lending is closely regulated by the RBI; changes to its rules on fees, co-lending or collections bear directly on this model.