SBFC Finance IPO will open for subscription from 03 August 2023. the company aims for an issue size of ₹1,025 Cr through this IPO.
Company Overview
| Full name | SBFC Finance Limited |
| Sector | Finance |
| Industry | Finance – Others |
| Company Website | https://www.sbfc.com/ |
About Company
Incorporated in 2008, SBFC Finance is a systemically important, non-deposit taking non-banking finance company (NBFC-ND-SI) offering Secured MSME Loans and Loans against Gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals. Among MSME-focused NBFCs in India, the company has one of the highest assets under management (AUM) growth, at a CAGR of 40% in the period from Fiscal 2019 to Fiscal 2022. It has also witnessed robust disbursement growth, at a CAGR of 39% between Fiscal 2019 and Fiscal 2022.
As of 31 December 2022, it had a footprint in 105 cities, spanning 16 Indian states and two union territories, with 137 branches. Its AUM was diversified across India, with 30.89% in the North, 38.16% in the South, and 30.95% in the West.
As of 31 March 2021, 31 March 2022, and 31 December 2022, SBFC Finance had provided loans to 56,587, 72,816, and 94,997 customers, and the Gross NPA ratio was 2.28%, 3.16%, 2.74%, and 2.51%, respectively, and its Net NPA ratio was 1.58%, 1.95%, 1.63%, and 1.54%, respectively.
The Objective of the Issue
- The Company proposes to utilize the Net Proceeds towards augmenting the Company’s capital base to meet their future capital requirements arising out of the growth of the business and assets.
IPO Timetable
| IPO Opening date | 03 August 2023 |
| IPO Closing | 07 August 2023 |
| Basis of Allotment | 10 August 2023 |
| Initiation Refund | 11 August 2023 |
| Credit to Demat Account | 14 August 2023 |
| Listing Date | 16 August 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,025 Cr |
| Fresh Issue | ₹600 Cr |
| Offer for sale | ₹425 Cr |
| Face value | ₹10per share |
| Price Band | ₹54 to ₹57 per share |
| Lot size | 260 Shares |
| Employee Discount | ₹ 2 per share |
| Listing Exchange | BSE & NSE |
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 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 463.17 | 473.15 | 654.15 |
| Expenses | 397.47 | 444.01 | 539.00 |
| Net income | 85.01 | 64.52 | 149.74 |
| Margin (%) | 18.35 | 13.64 | 22.89 |
Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 1.06 | 0.79 | 1.62 |
| PE ratio | – | – | 33.33 – 35.19 |
| RONW (%) | 7.67 | 5.18 | 9.83 |
| NAV | 14.66 | 15.42 | 19.26 |
| ROE (%) | 7.67 | 5.18 | 9.93 |
| EBITDA (%) | 78.17 | 67.44 | 74.96 |
| Debt/Equity | 2.93 | 2.87 | 2.55 |
Company Promoters
- SBFC Holdings Pte. Ltd.
- Clermont Financial Pte. Ltd.
- Arpwood Partners Investment Advisors LLP
- Arpwood Capital Private Limited
- Eight45 Services LLP
Promoter Holding
| Pre Issue Share Holding | 78.83% |
| Post Issue Share Holding | 64.03% |
Lead Manager(s)
- Icici Securities Limited
- Axis Capital Limited
- Kotak Mahindra Capital Company Limited
IPO Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222/ 79611000
E-mail: sbfc.ipo@kfintech.com
Website: www.kfintech.com
Contact Details
SBFC FINANCE LIMITED
103, 1st Floor, C&B Square, Sangam Complex,
Andheri Kurla Road, Village Chakala, Andheri (East), Mumbai 400 059
Phone: 022 6787 5344
E-mail: complianceofficer@sbfc.com
Website: www.sbfc.com
Allotment Status
SBFC Finance IPO allotment status will be available on the KFin Tech website. Click on this link to get allotment status.
Final thoughts
SBFC Finance IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
