SBFC Finance Initial Public Offering (IPO)
SBFC Finance IPO: A well-known non-banking financing firm (NBFC), SBFC financing, will begin accepting subscriptions for its Initial Public Offering (IPO) on Thursday, August 3. Investors may submit bids for as little as 260 shares and multiples thereof with a price range of Rs 54–57. On Monday, August 7, the IPO will come to an end.
A Systemically Important NBFC since 2008
Founded in 2008, SBFC financing has established itself as a non-banking financing organization with systemic importance. Customers are served through secured loans for MSME (Micro, Small, and Medium Enterprises) and loans secured by gold.
Small company owners, freelancers, salaried employees, and members of the working class make up the bulk of the clients.
Funds Raised and Utilization
The IPO for SBFC Finance is expected to collect Rs 1,025 crore. In addition, its promoter, which is made up of Arpwood Partners Investment Advisors, Arpwood Capital, and Eight45 Services, will make an offer-for-sale (OFS) of up to Rs 425 crore and a fresh issuance of Rs 600 crore.
The net proceeds from the IPO will be used to increase the company’s capital base and cover any future capital requirements brought on by the expansion of the company’s assets and activities. The selling shareholders of the corporation will get the money from the OFS in the meantime.
Extensive Nationwide Presence
For entrepreneurs and small company owners who may not have easy access to established financial institutions, SBFC Finance plays a critical role. Its wide pan-India network, which now has 152 branches, spans over 466 districts in 16 Indian states and 2 union territories.
Impressive Financial Performance
With a total income from operations of Rs 740.03 crore, SBFC Finance generated a remarkable net profit of Rs 149.74 crore for the fiscal year 2023. When compared to the prior year, the company’s net profit was Rs 64.52 crore, with operating revenue coming in at Rs 530.70 crore. Furthermore, throughout this time the Assets Under Management (AUM) rose from Rs 3,192.18 crore to Rs 4,942.82 crore.
Share Allocation and Listing Details
For its qualified workers, SBFC Finance has set aside shares worth Rs 10.25 crore at a discount of Rs 2 per share. Retail investors will have access to 35% of the shares, with 50% of the net offer reserved for eligible institutional bidders. Non-institutional investors are only allowed to purchase the final 15% of the net offer.
Listing on NSE and BSE
The primary managers of the IPO are Kotak Mahindra Capital Company, Axis Capital, and ICICI Securities. KFin Technologies is the registrar for the problem. The planned listing date for SBFC Finance is Wednesday, August 16. Shares of SBFC Finance will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
With its goal of empowering underprivileged entrepreneurs and small companies, SBFC Finance’s IPO offers investors the chance to follow the company’s development. It is a compelling investment opportunity for potential investors when the IPO opens for subscription since it provides a window into SBFC Finance’s solid financial performance and wide-ranging national footprint.