Business News/ Companies / News/  SBFC Finance secures pre-IPO funding of 150 cr from Amansa

Homegrown private equity firm Arpwood-backed SBFC Finance, a non-bank lender, has raised 150 crore from Singapore-based Amansa Capital through a pre-IPO (initial public offering) placement.

The board of SBFC allotted 27.27 million equity shares to Amansa, it said in a BSE filing on Wednesday.

The shares were allotted at 55 apiece, a person aware of the matter said.

SBFC had applied for a public listing in November last year. It refiled its draft prospectus in March this year, cutting the IPO size to 1,200 crore from 1,600 crore previously.

The IPO initially included an offer-for-sale of 850 crore by promoters SBFC Holdings, Arpwood Partners, Arpwood Capital, and Eight45 Services, which was trimmed to 450 crore in the new filing.

The revised plan involves Arpwood and its affiliates selling shares worth 300 crore while Clermont through SBFC Holdings would offload shares totalling 150 crore.

Earlier, Arpwood had planned to sell shares worth 575 crore while Clermont aimed to sell shares totalling 275 crore.

The size of the fresh issue has, however, been kept unchanged at 750 crore, according to the filing with the market regulator Securities and Exchange Board of India (Sebi).

SFBC had earlier said it may consider issuing equity shares on a private placement basis, aggregating up to 150 crore, before the IPO, in which case it will reduce the size of the primary issue.

Amansa Capital and a few other investors also participated in secondary deals, the person cited above said. SBFC declined to share details on the secondary transactions.

The Mumbai-based non-bank lender provides loans to entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals. It reported a growth of 39% in operating revenue at 733 crore in the financial year 2023. It reported a profit of 150 crore in FY23, up from 65 crore in the year before.

When it first filed its draft prospectus, SBFC was targeting a valuation of at least 5,400 crore, based on the last known share transactions in September 2022. However, it isn’t clear if it has also moderated its valuation expectations.

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Updated: 24 May 2023, 10:30 PM IST
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