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Business News/ Markets / Ipo/  SBFC Finance IPO: SBFC IPO to open on August 3, check key dates to price band
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SBFC Finance IPO: SBFC IPO to open on August 3, check key dates to price band

SBFC Finance details: SBFC Finance IPO price band has been set at ₹54 to ₹57 per equity share with a face value of ₹10 apiece. A minimum of 260 equity shares must be offered, and after that, bids can be made in multiples of 260 equity shares.

SBFC Finance IPO has fixed the price band at ₹54 to ₹57 per equity share of face value of ₹10 each. Premium
SBFC Finance IPO has fixed the price band at 54 to 57 per equity share of face value of 10 each.

SBFC Finance IPO: SBFC Finance Ltd initial public offering (IPO) opens for subscription on Thursday, August 3, and closes on Monday, August 7. The allocation to anchor investors for SBFC Finance IPO is scheduled to take place on Tuesday, August 2. SBFC Finance IPO price band has been fixed at 54 to 57 per equity share of face value of 10 each. Bids can be made for a minimum of 260 equity shares and in multiples of 260 equity shares thereafter. 

SBFC Finance IPO comprises of fresh issuance of equity shares worth 600 crore and an offer for sale (OFS) of 425 crore, according to the Red Herring Prospectus (RHP). The total offer size of SBFC Finance IPO now is 1,025 crore.

In March, SBFC Finance refiled its IPO papers with capital market regulator Securities and Exchange Board of India (SEBI), where they reduced the IPO size to 1,200 crore from 1,600 crore earlier.

Selling shareholders under the OFS include Arpwood Partners Investment Advisors, will be offering equity shares for 306 crore; Arpwood Capital; and Eight45 Services, would sell shares for up to 75 and 43 crore, respectively.

In accordance with the RHP, SBFC Finance intends to use the net proceeds to meet future capital requirements that are anticipated to result from the expansion of their company's operations and assets, including but not limited to, onward lending under company's lending verticals, namely, MSME loans and loans against gold, ensuring compliance with relevant regulatory requirements, payments of operating expenses, and funding growth opportunities.

"As of March 31, 2023 our Company’s Capital to Risk Weighted Assets Ratio (CRAR) was 14,135.76 million (equivalent to 31.90%) of which the Tier I capital was 14,049.52 million (equivalent to 31.71%) and our Tier II capital was 86.24 million (equivalent to 0.19%). We anticipate that the Net Proceeds will be sufficient to satisfy our company’s Tier- I capital requirements," said the company in its RHP.

The SBFC IPO size of the fresh issue has also been lowered as a result of the company's completion of a private placement of up to 150 crore, which was done in conjunction with the promoter-selling shareholders and the book-running lead managers.

The book-running lead managers (BRLM) for the SBFC IPO offer are ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company, while KFin Technologies is the registrar.

SBFC Finance IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors. Up to 102.50 million in equity shares may be reserved for employees.

SBFC Finance IPO's floor price is 5.4 times the face value of the equity share and the cap price is 5.7 times the face value of the equity shares. The price to earning ratio for fiscal 2023 based on diluted EPS at the floor price is 33.33 times at the cap price is 35.19 times. 

SBFC Finance Dates

SBFC Finance IPO's basis of allotment of shares will be finalised on Thursday, August 10 and the company will initiate refunds on Friday, August 11, while the shares will be credited to the demat account of allottees on Monday, 14 August. SBFC Finance IPO shares are likely to be listed on BSE and NSE on Wednesday, August 16.

SBFC Finance IPO GMP today

SBFC Finance IPO GMP or grey market premium is +38. This indicates SBFC Finance share price were trading at a premium of 38 in the grey market on Monday, according to topsharebrokers.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of SBFC Finance share price is 95 apiece, which is 66.67% higher than the IPO price.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

The firm specialises in providing loans to entrepreneurs, self-employed people, small business owners, and salaried people. The company generated sales of 525 for the nine months ending in December. During that time, the company made profit of 107.

It has 137 branches spread throughout 105 locations, and as of December 2022, it had 94,997 customers, up from 40,432 in FY20.

Also Read: Yatharth Hospital IPO: Issue subscribed over 36 times on day 3; QIBs steal the show

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Published: 31 Jul 2023, 09:44 AM IST
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