SBFC Finance IPO

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 nameSBFC Finance Limited
IndustryFinance – Others
Company Website

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 date03 August 2023
IPO Closing07 August 2023
Basis of Allotment10 August 2023
Initiation Refund11 August 2023
Credit to Demat Account14 August 2023
Listing Date16 August 2023

IPO details

Issue typeBook 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 size260 Shares
Employee Discount₹ 2 per share
Listing ExchangeBSE & NSE

IPO Lot Size

Retail (Min)1260₹14,820
Retail (Max)133380₹192,660
S-HNI (Min)143,640₹207,480
S-HNI (Max)6717,420₹992,940
B-HNI (Min)6817,680₹1,007,760

Reservation Details

QIB Shares Offered50%
NII (HNI) Shares Offered15%
Retail Shares Offered35%

Financial Performance

 FY 2021FY 2022FY 2023
Net income85.0164.52149.74
Margin (%)18.3513.6422.89
(Amount in ₹ Crores)

Valuations & Margins

FY 2021FY 2022FY 2023
PE ratio33.33 – 35.19
RONW (%)7.675.189.83
ROE (%)7.675.189.93
EBITDA (%)78.1767.4474.96

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 Holding78.83%
Post Issue Share Holding64.03%

Lead Manager(s)

  • Icici Securities Limited
  • Axis Capital Limited
  • Kotak Mahindra Capital Company Limited

IPO Registrar

Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222/ 79611000

Contact Details

103, 1st Floor, C&B Square, Sangam Complex,
Andheri Kurla Road, Village Chakala, Andheri (East), Mumbai 400 059
Phone: 022 6787 5344

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

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