SBFC Finance IPO Listing: Check Listing Price & More Details

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SBFC Finance IPO Listing: Strong Debut, Shares List at 43.8% Premium

SBFC Finance Ltd made a strong debut on the stock exchanges on Wednesday, listing at a premium of 43.85% to the issue price of ₹57 per share.

The stock opened at ₹82 apiece on the NSE and touched a high of ₹83.40 in early trade. It closed the day at ₹81.99 per share, up 43.84% from the issue price.

SBFC Finance IPO Subscription Status

The initial public offering (IPO) of SBFC Finance was subscribed 74.06 times in total between August 3 and August 7.

The public issue subscribed 11.60 times in the retail category, 203.61 times in Qualified Institutional Buyers’ (QIB) category, and 51.82 times in the Non-Institutional Investors’ (NII) category.

CategorySubscription
Retail11.60 times
QIB203.61 times
NII51.82 times

SBFC Finance IPO: Issue Size and Objectives

The ₹1,025 crore-worth SBFC Finance IPO comprised a fresh issuance of equity shares worth ₹600 crore and an offer for sale (OFS) of ₹425 crore.

The company had earlier raised ₹304.4 crore from anchor investors before the IPO opened.

SBFC Finance intends to use the net proceeds from the issue to meet future capital requirements anticipated to result from the expansion of their company’s operations and assets.

The company plans to use the funds for the following purposes:

  • To augment its capital base to meet future growth requirements
  • To expand its branch network and reach out to new markets
  • To develop new products and services
  • To invest in technology and infrastructure
  • To repay debt
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Key Highlights of SBFC Finance IPO

ParameterValue
Issue size₹1,025 crore
Fresh issue₹600 crore
OFS₹425 crore
Price band₹54-57 per share
Subscription74.06 times
Anchor investors₹304.4 crore
Listing dateAugust 16, 2023
Listing price₹82 per share
Listing gain43.85%

SBFC Finance Company Details

SBFC Finance Limited, incorporated in 2008, is a non-deposit, non-banking finance company. They provide their services through secured MSME loans and loans against gold.

The company has a pan-India presence with over 250 branches. It has a strong track record of growth, with revenues and profits growing at a CAGR of 25% and 20% over the past five years.

The company’s main customer base includes small business owners, entrepreneurs, self-employed individuals, and salaried and working individuals.

SBFC Finance offers its services so that entrepreneurs can fulfill their financial requirements.

Outlook for SBFC Finance

SBFC Finance is a well-positioned non-banking financial company with a strong track record of growth.

The company has a strong brand name, a wide distribution network, and a deep understanding of the MSME and gold loan segments. The company also has a strong risk management framework in place.

The strong listing of SBFC Finance IPO is a positive sign for the company. It shows that investors are bullish on the growth prospects of the non-banking financial sector, and SBFC Finance is well-positioned to benefit from this growth.

The company is expected to continue to grow in the coming years, and its stock is likely to be a good investment for long-term investors.

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