Non-Banking Finance Company SBFC Finance IPO Opens Today

Mumbai-based finance company SBFC Finance Limited has launched its Initial Public Offering (IPO) for subscription on August 3, and it will remain open until August 7. 

The company provides financial services to entrepreneurs and small business owners. The IPO is a Book Built Issue with a total size of Rs 1,025 crore.

The IPO price range is set at Rs 54 to Rs 57 per share. After the bidding process ends on August 7, the shares will be allotted to subscribers on August 10, and refunds will be initiated on August 11.

The Grey Market Premium (GMP) for SBFC Finance IPO was Rs 40 on August 2, indicating that shares were being traded at a premium in the unofficial market.

The IPO consists of fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 425 crore. The company aims to use the net proceeds to strengthen its capital base and meet future capital requirements for business expansion.

The lot size for the IPO is 260 shares, and the minimum amount required to apply for this lot is Rs 14,820.

On August 2, SBFC Finance raised Rs 304.4 crore from anchor investors, including well-known names like Abu Dhabi Investment Authority, Axis Mutual Fund, Birla Mutual Fund, and others.

The estimated listing price of SBFC Finance shares is Rs 96 per share, based on the upper end of the IPO price band and the current gray market premium. This would be approximately 68.42% higher than the IPO price.

As of the first day of subscription, the overall subscription status was 25%. Retail investors subscribed 38%, while non-institutional investors subscribed 31%.

However, the Qualified Institutional Buyers (QIBs) portion had not received any subscription at that time, and the employee portion was subscribed at 26%.

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The IPO is expected to list on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on August 16.

SBFC Finance is seeking to raise funds through the IPO to support its future growth and expansion plans. Investors are also showing interest in the IPO. The company’s shares are currently trading at a premium level in the gray market, indicating strong demand in the market.