SBFC Finance IPO ends with robust subscription

Published on Aug 08, 2023 10:42

The Qualified Institutional Buyers (QIBs) category was subscribed 192.89 times. The Non Institutional Investors (NIIs) category was subscribed 49.09 times. The Retail Individual Investors (RIIs) category was subscribed 10.99 times.

The initial public offer (IPO) of SBFC Finance received bids for 9,36,76,63,500 shares as against 13,35,12,817 shares on offer. The issue was subscribed 70.16 times.

The issue opened for bidding on 3 August 2023 and it closed on 7 August 2023. The price band of the IPO was fixed at Rs 54-57 per share.

The IPO comprised of fresh issue of equity shares worth up to Rs 600 crore and an offer for sale (OFS) aggregating up to Rs 425 crore by existing shareholders.

Among the promoters, Arpwood Partners Investment Advisors LLP was proposing to raise Rs 306 crore, Arpwood Capital Rs 75 crore and Eight45 Services LLP Rs 44 crore in OFS.

The promoter and promoter group shareholding would decline to 65.1% post IPO from 80.5% pre-IPO.

The company proposes to utilize the net proceeds towards augmenting capital to meet future capital requirements arising out of the growth of business and assets. The company also expects to receive the benefits of listing of the equity shares on the stock exchanges and enhancement of company`s brand name amongst existing and potential customers and creation of a public market for equity shares in India.

Ahead of the IPO, SBFC Finance on Wednesday, 2 August 2023, raised Rs 304.42 crore from anchor investors. The board allotted 5.34 crore shares at Rs 57 each to 37 anchor investors.

SBFC Finance is a NBFC offering secured MSME loans and gold loans to entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals. The NBFC has a diversified pan-India presence, with an extensive network in target customer segment. It has an expansive footprint in 120 cities, spanning 16 Indian states and two union territories, with 152 branches.

The company reported a net profit of Rs 149.74 crore and net total income of Rs 676.75 crore for the twelve months ended on 31 March 2023.