SBFC Finance IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Aug 07, 2023SBFC Finance filed for the DRHP in the last half of the year 2023. The document mentions that the company aims to raise Rs.1,025.00 Cr from the SBFC Finance IPO listing.
The firm is into providing loans to MSMEs and retail customers, thus, they plan to use the funds to expand and develop their services to aid the Tier-1 capital requirements.
This article covers the available details about the IPO. Read ahead to the SBFC Finance IPO review to get all the necessary information.
| Face Value | Rs 10 |
| Price Band | Rs 54 to Rs 57 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 260 Shares |
| Listing Date | 16 August 2023 |
| Offer for Sale | Rs 425.00 Crore |
| Fresh Issue | Rs 600.00 Crore |
| IPO Size | Rs 1,025.00 Crore |
| Tick Size | 1 |
SBFC Finance IPO Overview
As of now, there is limited information that is publicized about the IPO. But before digging into the IPO details, let’s focus on the operations and presence of the company.
SBFC Finance Limited is a secured loan provider to many MSMEs and the general public against gold. Currently, it is present pan-India in 104 cities across 16 states plus 2 union territories.
To present with the best-grade customer services, the company provides 135 back-end offices for walk-in customers.
They perform the necessary credit analysis before approving the loans. At present, they have 80,073 customers which grew at a CAGR of 25.6% in the last 2 years.
Thus, these stats show that the company has a positive growth spectrum and with the raised fund from the SBFC Finance IPO, they will be able to even cover every corner of Tier 2 and Tier 3 cities.
SBFC Finance IPO Important Dates
| Events | Date |
| IPO Opening Date | 3 August 2023 |
| IPO Closing Date | 7 August 2023 |
| Basis of Allotment Finalization | 10 August 2023 |
| Refunds Initiation | 11 August 2023 |
| Credit of Shares to Demat Account | 14 August 2023 |
| Share Listing Date | 16 August 2023 |
The bid and allotment date are made public by the company. Currently, information is now available on the prospective dates of the IPO.
The company has only applied for DRHP. First, it needs to be approved by SEBI then the bidding dates will be decided upon.
As inventors, you must keep checking for the opening and closing of SBFC Finance IPO dates to avoid missing out on investing in the IPO
SBFC Finance IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs 54 to Rs 57 |
| Offer for Sale | Rs 425.00 Crore |
| Fresh Issue | Rs 600.00 Crore |
| IPO Size | Rs 1,025.00 Crore |
The next important detail is knowing the SBFC Finance IPO size and the face value per share. Based on the lot size, the different interested parties can start bidding for the shares.
As per the information disclosed, the company has filed for DRHP of Rs.1,025.00 Cr. Out of this Rs.600.00 Cr will be a fresh issue and the remaining Rs.425.00 Cr will be as an Offer for Sale.
The face value is kept at Rs.10 per share. The SBFC Finance IPO Price band is not available yet. Once the details are available, the same will get updated in the above table.
SBFC Finance IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| Not Disclosed | |||
The grey market is the trading space where the IPO begins earlier than the bidding date. Many HNIs and others institutional investors trade the shares in this market, however, they will have to buy at a premium rate.
For the company, at present, there is no movement in the grey market as the company is yet to officially announce the initiation of the IPO. Once that happens, the SBFC Finance IPO GMP will be shared in the table presented here
SBFC Finance IPO Subscription Status
| Day / Date | QIB | NII | RII | Emp | Total Subscription |
| 1st Day – 3rd Aug | 0.03x | 4.37x | 2.22x | 1.19x | 2.05x |
| 2nd Day – 4th Aug | 7.09x | 13.70x | 5.26x | 2.61x | 7.52x |
| 3rd Day – 7th Aug | 203.61x | 51.82x | 11.60x | 6.21x | 74.06x |
| Shares Offered or Net Issue | 35,605,261 | 26,703,948 | 62,309,210 | 1,863,636 | 126,482,055 |
The company has only put in the papers for the IPO. As there is still time for the bidding to start, currently the subscription status is nil.
However, in the upcoming time when the IPO bidding begins, interested parties looking to analyze the bidding trend can access the live SBFC Finance IPO Subscription status by clicking here.
SBFC Finance IPO Allotment Status
The allotment or shares offered by the company to the different investor classes is 50% to Qualified Institutional Buyers and National Institutional Investors, 35% to retail investors, and 15% to National Institutional Investors.
Now as the IPO goes live, the actual SBFC Finance IPO Allotment done in each of the investor classes can be checked in this link here.
SBFC Finance IPO Live Performance
Many investors will want to constantly monitor the performance and the SBFC Finance Share Price of the IPO.
It could be to keep a tab on whether their investment is worth it or to analyze if they should choose to invest or not. Irrespective of the reason, receive the complete details on the live SBFC Finance IPO performance here.
Subscribe to SBFC Finance IPO – Open Free Demat Account Now!
Latest SBFC Finance IPO News
The Mumbai-based finance company successfully drafted and filed the RHP to the SEBI recently in the year 2022. The listing dates are yet to be revealed, however, there is no doubt that it will take place in 2023.
The listing will be a mix of both offers for sale and fresh issues. The fresh issue of Rs.600.00 Cr will be raised to meet the expansion goals whereas the Rs. 425.00 Cr from the offer for sale will be offered to the shareholders for diluting their shares.
Apart from this, not much detail is currently available. The SBFC Finance IPO News will keep getting updated as we receive it.
SBFC Finance – Company Review
SBFC Finance is a Mumbai-based company operating since 2017. The organization likes to refer to itself as a new-age financial service institution. The company is backed by many industry leaders.
The infrastructure and retail lending book of the lending institution are acquired from Karvy Financial Services Limited. The operations are led by Aseem Dhru, CEO, former HDFC Bank senior executive, Mahesh Dayani, Chief Business Officer, and former Kotak Mahindra Bank senior executive.
With such experience in its belt, the organization leads its “NBFC-ND-SI” services. The acronym stands for non-deposit accepting non-banking finance companies providing secured loans to MSMEs, salaried customers, self-employed individuals, and other working-class people.
Products or Services
The company has two major products: MSME Loans and Loans against gold.
They provide services to both companies and retail customers. However, since it is a loan-granting institution, they take credit analysis very seriously. The eligibility criteria for the loans are as follows:
- The borrowing party should have a monthly income of less than Rs.0.15 million.
- For any automobile loans, the party should have a positive debt-paying record.
- They should have a CIBIL score of above 700.
Promoters and Holding
The promoters who are leading this IPO are:
- SBFC Holdings Pte. Ltd.
- Clermont Financial Pte. Ltd.
- Arpwood Partners Investment Advisors LLP
- Arpwood Capital Private Limited
- Eight45 Services LLP
SBFC Holdings Pte. Ltd. Is the major shareholder with a 73% stake. Each of the promoters is diluting their shares worth Rs.425.00 Cr.
Is SBFC Finance Good for Investment?
SBFC is an institution that is doing a lot of good to the corporate sector. They are an organization that provides loan facility to underbanked and underserved customers and help them meet their financial requirements.
With such services, they have been leading the sector will yearlong positive revenues and net profits, despite the economic volatility. And now has filed for the SBFC Finance IPO proving its strength in providing the best services.
SBFC Finance Financial Statements
| Amount (in INR & Million) | ||||
| 30-Jun-22 | 31-Mar-22 | Mar-21 | 31-Mar-20 | |
| Assets | 46,630.32 | 45,150.34 | 42,311.90 | 42,079.85 |
| Revenue | 1,601.23 | 5,307.02 | 5,115.33 | 4,448.46 |
| Expense | 1,172.64 | 4,440.06 | 3,974.68 | 3,862.34 |
| Profit After Tax | 320.66 | 645.21 | 850.10 | 354.95 |
The company has successfully witnessed a 39% CAGR growth over the past 3 fiscal years. This is a positive determinant of IPO listing. And the Assets Under their Management saw a growth of 40% showing an increase in the customer base.
The net income of the company as of June 2022 is Rs.1,601.23 million and the net profit equals Rs.320.66 million.
With such positive financial health, the organization makes the news for soon launching the SBFC Finance IPO making many analysts and investors excited for the listing.
| Earnings per Equity Share (in Million) | ||||
| 30-Jun-22 | 31-Mar-22 | Mar-21 | 31-Mar-20 | |
| Basic | 0.37 | 0.81 | 1.09 | 0.49 |
| Diluted | 0.36 | 0.79 | 1.06 | 0.48 |
SBFC Finance IPO Review
There are not many details available on the SBFC Finance IPO as the company has only submitted the DRHP documents. with time, the price band, bidding dates, and other relevant data will be announced once the capital market regulator gives a go-ahead.
The other details available are that the book-leading managers are Axis Capital, Kotak Mahindra Capital Company, and ICICI Securities.
The registrar of the listing is KFin Technologies. Stay tuned for more information and SBFC Finance IPO Review.
SBFC Finance IPO Details
Here are few more details you need to know before investing in SBFC Finance IPO –
SBFC Finance IPO Issue Object
The SBFC Finance has proposed diverse objectives for making the IPO offer and some of the objectives are:
- To lend and advance money or give credit with or without security
- To borrow raise money with or without security
- To undertake and provide services related to buying, selling and dealing in shares and securities of
bodies corporate - To render services as brokers, distributors, commission agents, corporate agents, importers and
exporters - To carry on in India or abroad the business of advertising & publicity
SBFC Finance IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Diversified pan-India presence with an extensive network to cater to our target customer segment
- 100% in-house sourcing, leading to superior business outcomes
- Comprehensive credit assessment, underwriting and risk management framework
- Strong on-ground collections infrastructure leading to maintenance of robust asset quality
- Strong liability franchise with low cost of funds
- Consistent financial performance backed by profitable growth
- Experienced, cycle-tested and professional management team with strong corporate governance backed
by marquee investors.
Quantitative factors are:
| Basic EPS | Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 0.81 | 0.79 | 5.18 | 15.42 |
| 31-Mar-21 | 1.09 | 1.06 | 7.67 | – |
| Mar-20 | 0.49 | 0.48 | 3.75 | – |
SBFC Finance IPO Lead Managers
Here are the list of Lead managers –
- ICICI Securities Limited
- Axis Capital Limited
SBFC Finance IPO Registrar to offer
Check out the details of the registrar here –
KFin Technologies Limited
Selenium, Tower-B,
Plot 31 & 32, Financial District,
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032,
Telangana, India
Tel: +91 40 6716 2222 / 7961 1000
E-mail: Sbfc.ipo@kfintech.com
Investor grievance e-mail:
einward.ris@kfintech.com
Website: www.kfintech.com
Contact person: M. Muralikrishna
SEBI Registration No: INR000000221
SBFC Finance IPO – Other Details
- Statutory Auditor – M/s Suresh Surana & Associates LLP, Chartered Accountants
- Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co.
- Bankers to the Company – Kotak Mahindra Bank Limited, IndusInd Bank Limited, The Federal Bank Limited, State Bank of India, Axis Bank Limited, HDFC Bank Ltd, Indian Bank, AU Small Finance Bank Limited, Yes Bank Limited,
SBFC Finance IPO Verdict by Stock Brokers
Since the SBFC Finance IPO is at the very ideation stage, currently the stock brokers are only evaluating the overall market growth and the financial performance of the company.
As further proceedings start taking place, more analysts will come forward with their opinions.
SBFC Finance IPO – Conclusion
All the details available here are authentic and will soon get updated as the information is made public.
As an interested investor, always make sure to perform your analysis before investing your hard-earned money and not just rely on SBFC Finance IPO Reviews.
To Subscribe to SBFC Finance IPO – Open Demat Account Now!
SBFC Finance IPO Review FAQs
Check out the FAQs on SBFC Finance IPO –
What is the Issue Size of SBFC Finance IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of SBFC Finance IPO?
The price band for this particular IPO ranges between Rs 54 to Rs 57. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the SBFC Finance IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on 3 August 2023, while the closing date is set at 7 August 2023.
What is the SBFC Finance IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on 10 August 2023, refund initiation is on 11 August 2023, credit of shares is on 14 August 2023, and share listing date is on 16 August 2023.
What is the SBFC Finance IPO Listing Date?
Shares of this company shall be listed in the exchanges on 16 August 2023. The date, when the listing would be done, is stagnant on 16 August 2023.
Who is the Registrar of SBFC Finance IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of SBFC Finance IPO?
Here are the promoters of this IPO – SBFC HOLDINGS PTE. LTD., CLERMONT FINANCIAL PTE. LTD., ARPWOOD PARTNERS INVESTMENT ADVISORS LLP, ARPWOOD CAPITAL PRIVATE LIMITED AND EIGHT45 SERVICES LLP. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of SBFC Finance IPO?
They have obtained the GMP of this IPO and it is Rs. NA. Further insights into the Kostak rate and subject to sauda or SS are as well included in this report.
Is SBFC Finance IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of SBFC Finance Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2022 in Million is 645.21, 2021 is 850.10, and 2020 is 354.95. PAT from Jun 2022 is 645.21.
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