The initial public offering (IPO) of SBFC Finance IPO which opened for subscription on Thursday (August 3) will close today (August 7). The company has fixed the price band of SBFC Finance IPO at Rs 54 to Rs 57 per equity share. On the back of strong interest shown by retail and non-institutional investors, the issue was subscribed 7.09 times overall.
Against the 13.35 crore shares issued by the company, the issue received bids of 95.05 crore shares, according to the data available on exchanges. Overall, the issue was subscribed 7.52 times
The non-banking financial company (NBFC) is planning to raise Rs 1,025 crore through public issue, which includes a fresh issuance of shares aggregating to Rs 600 crore and an offer for sale (OFS) of Rs 425 crore by promoters.
SBFC Finance has said that it will use fresh issue proceeds, barring IPO expenses, mostly for increasing its capital base to fulfil future capital requirements arising out of the growth of the business and assets, while the OFS money will be distributed to selling shareholders.
The company has reserved 50% of the offer size for qualified institutional buyers (QIBs), 15% for non-institutional investors (NII), and the remaining 35% for retail investors.
SBFC Finance IPO subscription status
In two days of bidding, the IPO of SBFC Finance has been subscribed 7.09 times while its retail portion has been subscribed 4.93 times. For NII Category and QIB category, the book build issue has been subscribed 12.95 times and 6.71 times respectively.
Meanwhile, the grey market is also showing positive signals with respect to SBFC Finance IPO. According to market observers, SBFC Finance shares are available at a premium of Rs 40 in the grey market today.
Ahead of the IPO, SBFC Finance raised Rs 304.4 crore from anchor investors on Wednesday. The anchor investor list comprised existing investors and new investors including Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, and Neuberger Berman among others.
SBFC Finance IPO lot size
Investors can bid for a minimum of 260 equity shares and in multiples of 260 equity shares thereafter.
SBFC Finance IPO GMP
According to market observers, SBFC Finance IPO GMP or grey market premium today is Rs 40, around 70% higher than the SBFC Finance IPO price band of Rs 54 to Rs 57 per share.
This indicates over 70% gains for investors on the SBFC Finance IPO listing date.
About the company:
SBFC Finance Private Limited offers financing solutions. The Company provides loans against property, personal, secured, and gold loans.
As per the company’s annual report, in FY22, the company’s secured MSME disbursements grew by 124% to reach Rs 1,333 Crores. This led to a growth of 4.27% in total income to Rs 533 Crores compared to Rs 511 Crores in the previous year. The firm’s Profit After Tax stood at Rs 64 Crores compared to Rs 85 Crores in the previous year.