SBFC Finance IPO Subscribed 6.6 Times On Day 2, Retail Portion Booked Over 5x

SBFC Finance IPO witnessed a strong demand from investors as the public issue has received robust subscriptions. The IPO, which aims to raise Rs 1,025 crore, has been subscribed by over 6.67 times so far on August 4, the second day of its issue.

The public issue received bids for 84.40 crore shares as against the issue size of 13.35 crore shares. SBFC Finance IPO was subscribed 5.10 times in the retail category, while it was subscribed 4.70 times in Qualified Institutional Buyers’ (QIB) category. The Non-Institutional Investors’ (NII) portion was booked 13.25 times till 4:45 pm.

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On Wednesday, SBFC Finance IPO raised ₹304.4 crore from anchor investors including Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, Neuberger Berman among others. The anchor list also saw existing investors ICICI MF, SBI MF, HDFC MF, Amansa, Malabar and Steadview Capital participating in the offer.

A total of 5,34,07,893 equity shares were allotted to the anchor investors, of which 2,23,08,260 equity shares were allocated to 10 domestic mutual funds through a total of 18 schemes for a total of ₹127.15 crore, or 42% of the anchor book size.

SBFC Finance IPO GMP (grey market premium) was trading at ₹40 per share. This indicates SBFC Finance share price was trading at a premium of ₹40 in the grey market on Friday, according to topsharebrokers.com.

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Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of SBFC Finance share price is ₹97 apiece, which is 70.18% higher than the IPO price.

The company has set a price band of ₹54-57 per share. SBFC Finance said that the net proceeds from the fresh issue to the tune of ₹600 crore will be used for expanding its capital base to satisfy future capital requirements.