📰 Join for the Latest Finance Updates → |
SBFC Finance IPO: Company Details
SBFC Finance, incorporated in 2008, is a non-deposit-taking non-Banking company. The company’s primary customer base includes entrepreneurs, self-employed individuals, small business owners, and working-class individuals.
The company extends its services through secured MSME loans and loans against Gold.
Objective of SBFC Finance IPO
The company intends to utilize the net proceeds towards augmenting its capital base to meet its future capital requirements arising from the growth of its business and assets.
SBFC Finance IPO Details
The SBFC Finance IPO opens for subscription on August 3rd and closes on Monday, August 7th.
The company has fixed the price band at Rs 54 to Rs 57 per equity share for the proposed initial public offering. Bids can be placed for at least 260 equity shares and in multiples of 260 shares after that.
SBFC Finance’s IPO basis of allotment of shares will be finalized by Thursday, August 10th, and the company will initiate funds on August 11th.
In contrast, the shares will be credited to the demat accounts of the allottees on August 14th. SBFC IPO shares will likely be listed on BSE and NSE on Wednesday, August 16th.
| IPO Date | Aug 3, 2023 to Aug 7, 2023 |
| Listing Date | 16 August 2023 |
| Face Value | ₹10 per share |
| Price | ₹54 to ₹57 per share |
| Lot Size | 260 Shares |
| Total Issue Size | [.] shares (aggregating up to ₹1,025.00 Cr) |
| Fresh Issue | [.] shares (aggregating up to ₹600.00 Cr) |
| Offer for Sale | [.] shares of ₹10 (aggregating up to ₹425.00 Cr) |
| Employee Discount | Rs 2 per share |
| Issue Type | Book Built Issue IPO |
Don't Miss: Oriana Power IPO: Dates, Issue Size, GMP, Financials
SBFC Finance IPO Tentative Timetable
| IPO Open Date | Thursday, 3 August 2023 |
| IPO Close Date | Monday, 7 August 2023 |
| Basis of Allotment | Thursday, 10 August 2023 |
| Initiation of Refunds | Friday, 11 August 2023 |
| Credit of Shares to Demat | Monday, 14 August 2023 |
| Listing Date | Wednesday, 16 August 2023 |
SBFC Finance IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
SBFC Finance IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 260 | ₹14,820 |
| Retail (Max) | 13 | 3380 | ₹192,660 |
| S-HNI (Min) | 14 | 3,640 | ₹207,480 |
| S-HNI (Max) | 67 | 17,420 | ₹992,940 |
| B-HNI (Min) | 68 | 17,680 | ₹1,007,760 |
SBFC Finance IPO Financials
SBFC Finance’s IPO floor price is 5.4 times the face value of the equity share, and the cap value is 5.7 times the face value of the equity share.
The price-to-earnings ratio for fiscal 2023 based on diluted EPS at the floor price is 33.33 times; at the cap price, it is 35.19 times.
In March, SBFC Finance refiled its IPO papers with the capital regulator, the Securities and Exchange Board of India (SEBI), where they reduced the IPO size from Rs 1200 crore to Rs 1600 crore.
| Period Ended | 31 Mar 2020 | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 4,207.99 | 4,231.19 | 4,515.03 | 5,746.44 |
| Revenue | 444.85 | 511.53 | 530.70 | 740.36 |
| Profit After Tax | 35.50 | 85.01 | 64.52 | 149.74 |
| Net Worth | 752.09 | 944.72 | 1,026.78 | 1,466.88 |
| Reserves and Surplus | – | – | – | – |
| Total Borrowing | 3,056.38 | 2,772.55 | 2,948.82 | 3,745.83 |
SBFC Finance IPO GMP
SBFC Finance’s GMP, or grey market premium, is +40. This indicates SBFC Finance’s share price was traded at Rs 40 in the grey market on Tuesday.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of SBFC Finance’s share price is Rs 97 per share, which is 70.18% higher than the IPO price.
Grey market premium readiness indicates the readiness of the investors to pay more than the issue price.
Frequently Asked Questions (FAQs) about SBFC Finance IPO
Wrap up on SBFC Finance IPO
Based on FY 23 earnings, in comparison to its peers, SBFC Finance IPO is aggressively priced.
With only a cash surplus, aggressive investors may park funds for the medium and long term in this costly IPO.
Check out: 12 Upcoming IPOs in August 2023 (Full List)
📰 Join for the Latest Finance Updates → |
