SBFC Finance IPO to open on August 3; check important details here

31 Jul 2023 , 09:59 AM

The initial public offer of SBFC Finance IPO will be opening for subscription on August 3 and will conclude on August 7. 

The company was incorporated in 2008 is a non-depository taking NBFC which provides services in the form of secured MSME loans and loans against gold. The primary customer base of the NBFC includes entrepreneurs, small business owners, self-employed individuals, and salaried and working-class individuals.

Important details of SBFC Finance IPO:

• Issue Size: the company want to raise Rs 1025 crore from the maiden public offer. This includes fresh issue of equity shares worth Rs 600 crore and an offer for sale of Rs 425 crore by promoters.
• Price Band: SBFC Finance has fixed price band at Rs 54-57 per share for its initial public offering.
• Lot size: Investors who want to apply for the IPO can bid for 260 shares and its multiples in a lot.
• Minimum investment: Retail investors are required to make a minimum investment of Rs 14,820 per lot, which consists of 260 shares. On the other hand, the maximum investment permitted for retail investors is Rs 1,92,660, which corresponds to 3,380 shares (equivalent to 13 lots), as they are allowed to invest up to Rs 2 lakh in the IPO.
• The IPO offer is divided into three categories: 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% is allocated to high-net-worth individuals (HNIs), and the remaining 35% is reserved for retail investors.
• Anchor book: The anchor investment for the IPO will take place on August 2.
• IPO objectives: The company will use net proceeds from the IPO towards strengthening the capital base in order to meet future capital requirements arising from the growth of the business and assets.
• Basis of allotment: The company will finalise the allotment of shares on August 10.
• Listing date: The shares of SBFC Finance Limited are expected to list on BSE and NSE on August 16.

In May 2023, the company has also raised Rs 150 crore through pre-IPO placement which gradually reduced its IPO size. It has allotted 2.72 crore equity shares to Amansa Investments.

ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company have been appointed as the book-running lead managers (BRLM) for the offer, while KFin Technologies will serve as the registrar.

As of December 2022, the company has a network of 137 branches spanning across 105 locations. During this period, the customer base has significantly grown to 94,997, a substantial increase from 40,432 in FY20.