SBFC Finance Shares Rise 44% from IPO Price, Listed At ₹82 On NSE

SBFC Finance is an NBFC that primarily serves entrepreneurs, small business owners, self-employed individuals, and salaried workers.

SBFC Finance, a non-banking financial company (NBFC), had a strong stock market debut on August 16 after its initial public offering (IPO).

The IPO price was set at Rs 57 per share, but when the shares started trading, they opened at Rs 82 on the NSE, which is a 44% increase from the IPO price. On the BSE, the opening price was Rs 81.99, also up by around 44%.

During the day, SBFC Finance’s shares climbed even higher, reaching an intraday high of Rs 94.60, which is a 66% increase from the IPO price. This strong debut suggests that investors are optimistic about the company’s prospects.

The IPO, which was open for subscription from August 3 to August 7, received significant demand from investors. It was oversubscribed 74.06 times in total.

Qualified institutional buyers (large investors like mutual funds and banks) showed high interest, subscribing 203.61 times, while non-institutional investors subscribed 51.82 times, and retail investors subscribed 11.60 times.

SBFC Finance’s IPO comprised both fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 425 crore. The company had previously raised Rs 304.4 crore from anchor investors before the IPO.

The funds raised through the IPO are intended to be used to meet the company’s future capital requirements as it expands its operations and assets.

Analysts are divided on the future outlook for SBFC Finance stock. Some suggest booking profit due to market volatility, while others are positive on the stock’s long-term growth potential.

The company had a successful debut in the secondary market, with a premium of 44%. However, it is sensitive to interest rates and market cycles.

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The issue was oversubscribed, and analysts remain optimistic about the company’s medium to long-term prospects.

SBFC Finance provides secured MSME loans and loans against gold, primarily to entrepreneurs and small business owners. The company has an extensive pan-India network and aims to serve underserved individuals.