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SBFC FINANCE LTD IPO

IPO Details

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260 shares
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₹ 54 – 57
₹ Up to 1025 crores

Issue timeline

  • -
  • 10-Aug-2023
  • 11-Aug-2023
  • 14-Aug-2023
  • 16-Aug-2023

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

- A systemically important, non-deposit taking non-banking finance company (“NBFC-ND-SI”) offering Secured MSME Loans and Loans against Gold(Source: CRISIL Report)
-Majority of the borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working class individuals
-Among MSME-focused NBFCs in India, the company has one of the highest assets under management (“AUM”) growth, at a CAGR of 40% in the period from Fiscal 2019 to Fiscal 2022. (Source: CRISIL Report).

Strengths & Risks

Strengths (3)

Diversified pan-India presence with an extensive network to cater target customer segment
The company has strategically focused expansion within target customer segment which offers significant growth opportunities.As of December 31, 2022, they have an expansive footprint in 105 cities, spanning 16 Indian states and two union territories, with 137 branches(Source: Company DRHP)

Risks (2)

The risk of non-payment or default by borrowers may adversely affect business, results of operations and financial condition.
As of December 31, 2022, they had 3,448 loans, comprising 7.82% of total advances for Secured MSME Loans, extended to borrowers who were new to the formal secured lending ecosystem. Such customers may have a high risk of non-payment or default due to a number of reasons. They cannot assure you that their monitoring and risk management controls will be sufficient to prevent future losses on account of customer defaults, there by adversely affecting business (Source: Company DRHP)

  • Diversified pan-India presence with an extensive network to cater target customer segment
    The company has strategically focused expansion within target customer segment which offers significant growth opportunities.As of December 31, 2022, they have an expansive footprint in 105 cities, spanning 16 Indian states and two union territories, with 137 branches(Source: Company DRHP)

  • 100% in-house sourcing, leading to superior business outcomes
    They acknowledge the complexities of underwriting loans, and to ensure positive business outcomes, 100% of loan portfolio has in-house origination, limiting reliance on direct selling agents or connectors in order to ensure a more direct, thorough understanding of the customer’s profile.(Source: Company DRHP)

  • Comprehensive credit assessment, underwriting and risk management framework
    Company’s risk management committee has developed risk management policies, addressing credit risk, market risk, liquidity risks and operational risks. Leveraging their significant operational experience, they have set up stringent credit quality checks and customised operating procedures that exist at each stage for comprehensive risk management.(Source: Company DRHP)

  • The risk of non-payment or default by borrowers may adversely affect business, results of operations and financial condition.
    As of December 31, 2022, they had 3,448 loans, comprising 7.82% of total advances for Secured MSME Loans, extended to borrowers who were new to the formal secured lending ecosystem. Such customers may have a high risk of non-payment or default due to a number of reasons. They cannot assure you that their monitoring and risk management controls will be sufficient to prevent future losses on account of customer defaults, there by adversely affecting business (Source: Company DRHP)

  • Volatility in interest rates for both lending and treasury operations, could have an adverse effect on net interest income.
    An increase in interest rate can add to the financial stress of borrowers, leading to higher delinquencies and may reduce the overall demand for retail loans and impact growth.(Source: Company DRHP)

Financials

Net Worth
Total Income
Total Borrowings
Profit/Loss after tax
Basic Earning per Share (EPS)

Industry Overview

- India has world’s largest private gold holdings : As of March 2011, Indian households had gold stock of around 19,000 to 20,000 tonnes which has increased to 27,400 tonnes as of March 2022, of which just around 7% is pledged with financiers, as per CRISIL MI&A
estimates.
- Housing, auto and gold to lead NBFC credit growth :  Housing outstanding book of NBFCs and HFCs grew at a healthy CAGR of 15% over Fiscal 2015 to Fiscal 2020. Auto finance saw 4.6% growth in Fiscal 2022. Gold loan finance is estimated to have grown around 11% with demand restoring in Fiscal 2022 (Source: Company DRHP)

SBFC Finance IPO FAQs

What is the price band for SBFC Finance IPO?

The price band of SBFC Finance IPO is Rs.54 –Rs.57 per share.

SBFC Finance IPO listing date is Aug 16th ,2023

SBFC Finance IPO shares will be allotted on Aug 10th ,2023

SBFC Finance IPO opens from Aug 03rd,2023 and closes on Aug 07th ,2023 for subscription.

SBFC Finance IPO is mainboard IPO of issue size up to Rs.1025 Crores

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SBFC Finance Ltd IPO

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260 shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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