SBFC Finance, incorporated on January 25, 2008, is a systemically important, non-deposit-taking non-banking finance company. It specializes in offering secured MSME loans and loans against gold, with a majority of borrowers being entrepreneurs, small business owners, self-employed individuals, as well as salaried and working-class individuals.
| Bidding Dates |
|---|
| 03 Aug 2023 - 07 Aug 2023 |
| Subscription |
|---|
| 70.16x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹14,820 | 1 | 13 | 260 | 179.8 M | ₹54 - ₹57 | 83.1 % | ₹9710.5 M - ₹10250.0 M | RHP DOC |
SBFC Finance IPO SUBSCRIPTION STATUS
07 Aug '23SBFC Finance IPO overall subscription rate was 70.16 times the total available shares
SBFC Finance IPO retail subscription rate was 10.99 times in the retail segment
SBFC Finance IPO non-institutional investor subscription rate was 49.09 times in the non-institutional investor category
SBFC Finance IPO Qualified Institutional Bidder subscription rate was 192.9 times the available shares for Qualified Institutional Bidder
SBFC Finance IPO Employees subscription rate was 5.87 times in the Employees category
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers | Employees |
|---|---|---|---|---|
| Category Reservation | 35% | 15% | 50% | - |
07 Aug 2023 (Day 3) | 10.99x | 49.09x | 192.9x | 5.87x |
04 Aug 2023 (Day 2) | 4.93x | 12.95x | 6.71x | 2.44x |
03 Aug 2023 (Day 1) | 2.06x | 4.12x | 0.03x | 2.05x |
SBFC Finance FINANCIALS
| Period | Net Profit (Rs in millions) | Interest Income (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) |
| FY23 | 1,497.4 | 6,541.5 | -12,449.6 | -12,534.6 |
| FY22 | 645.2 | 4,731.5 | -8,216.4 | -8,313.5 |
| FY21 | 850.1 | 4,631.7 | -2,752.0 | -2,895.4 |
SBFC Finance IPO SUBSCRIPTION STATUS DETAILS
SBFC Finance had 179.8 M shares on offer
SBFC Finance IPO offer price was in the range ₹54 - ₹57
SBFC Finance IPO minimum Investment was ₹14820
SBFC Finance IPO issue size was ₹ 9710.5 M - ₹ 10250.0 M
SBFC Finance had a minimum lot size of 260 Shares per application
SBFC Finance NUMBER OF SHARES ON OFFER
SBFC Finance IPO IMPORTANT DATES
| Issue Open Date | 03 Aug 2023 |
| Issue close Date | 07 Aug 2023 |
| Allotment Date | 10 Aug 2023 |
| Refund Date | 11 Aug 2023 |
| Demat Account Credit Date | 14 Aug 2023 |
| Listing Date | 16 Aug 2023 |
| Listing on Exchange(s) | NSE and BSE |
| SBFC Finance Allotment Status | Exchange |
SBFC Finance IPO subscription opened on 03 Aug 2023, and closed on 07 Aug 2023
IPO allotment for SBFC Finance was finalized on Thursday, 10 Aug 2023
IPO listing for SBFC Finance was on NSE and BSE on Wednesday, 16 Aug 2023
SBFC Finance IPO LISTING GAINS
| Issue Price (adjusted) | 57.0 |
| Listing Open Price | 82.0 |
| Listing Close Price | 92.2 |
| Listing Gain% | 43.9% |
| Current Gain% | 64.9% |
SBFC Finance Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SBFC Finance Ltd. | 94 | 10003.2 | 21.7 | 0.7 | 5.8 | 12.1 | 4.1 | 1679.5 | 28.6 | 450.8 | 30.6 | 4.3 | 30.7 |
| Bajaj Finance Ltd. | 1102.2 | 686224.7 | 33.8 | 2 | 8 | 16.7 | 3.4 | 81989.5 | 17.6 | 19017.4 | 14.3 | 32.6 | 16.5 |
| Shriram Finance Ltd. | 1137.8 | 267718.5 | 23.7 | 1.4 | 5.4 | 15.2 | 3.1 | 48192.6 | 15.1 | 10024.2 | 4.9 | 48.1 | 16.8 |
| Jio Financial Services Ltd. | 254 | 167719.8 | 81.2 | 3 | 34.2 | 1.2 | 1 | 3542.6 | 70.4 | 1560.9 | -3.2 | 3.1 | 27.2 |
| Cholamandalam Investment & Finance Company Ltd. | 1920 | 161816.4 | 28.1 | 1 | 5 | 17.2 | 2.1 | 31538.7 | 20.6 | 5232.6 | 22.8 | 68.2 | 29.1 |
| Tata Capital Ltd. | 367.8 | 156147.5 | 28.9 | 1 | 4.8 | 10.8 | 1.7 | 31582.6 | 11.3 | 4846.1 | 32.2 | 12.7 | 28.9 |
SBFC Finance INFORMATION ON IPO ISSUE
About SBFC Finance
SBFC Finance, incorporated on January 25, 2008, is a systemically important, non-deposit-taking non-banking finance company. It specializes in offering secured MSME loans and loans against gold, with a majority of borrowers being entrepreneurs, small business owners, self-employed individuals, as well as salaried and working-class individuals.
Object of the Issue
- To utilize the net proceeds towards augmenting the company’s capital base to meet the future capital requirements arising out of the growth of the business and assets
- To receive the benefits of listing equity shares on the stock exchange
SBFC Finance - PROMOTERS
| Name |
|---|
| SBFC Holdings Pte. Ltd. |
| Clermont Financial Pte. Ltd. |
| Arpwood Capital Private Limited |
| Arpwood Partners Investment Advisors LLP |
| Eight45 Services LLP |
SBFC Finance Book Running Lead Managers
ICICI Securities Limited
sbfc.ipo@icicisecurities.com
SBFC Finance Book Running Lead Manager
Axis Capital Limited
sbfc.ipo@axiscap.in
Kotak Mahindra Capital Company Limited
sbfcfinance.ipo@kotak.com
SBFC Finance Registrar to the Offer
KFinTechnologies Limited
Sbfc.ipo@kfintech.com
SBFC Finance Strengths
Pan-India presence
The company boasts a diversified pan-India presence with an extensive network strategically positioned to cater to its target customer segment
100% in-house sourcing
The company sources customers directly through its sales team of 1,911 personnel and has adopted a direct sourcing model through branch-led local marketing efforts, repeat customers, or walk-ins. This approach has proven effective in customer retention
Comprehensive credit assessment
The company has implemented a credit assessment and risk management framework to effectively identify, monitor, and manage risks inherent in its operations
SBFC Finance Risks
Negative cash flows
The company has experienced negative cash flows in the past. Any negative cash flows in the future could adversely affect the cash flow requirements, which, in turn, may impact the ability to operate the business effectively
Increasingly competitive industry
The company's inability to compete effectively in an increasingly competitive industry may have adverse effects on its net interest margins, income, and market share
Dependent on ICICI Bank
The company relies on a significant portion of its AUM and disbursements from the co-origination agreement with ICICI Bank. The termination of this agreement or similar agreements in the future may have an adverse impact on its growth prospects
IPO FAQs
This IPO consists of an offer for sale of up to Rs 425.0 crore, of 74,561,404 shares. It also consists of a fresh issue of Rs 600.0 crore.
The promoters of the company are SBFC Holdings Pte. Ltd., Clermont Financial Pte. Ltd., Arpwood Capital Private Limited, Arpwood Partners Investment Advisors LLP and Eight45 Services LLP.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 54.0 - 57.0.
The IPO application opens on Aug 03, 2023 and closes on Aug 07, 2023.
The minimum lot size for the IPO is 260. The maximum lot size for the IPO is 3380.
For all category investors, the minimum application amount for this IPO is Rs. 14,820.0, the maximum value for this IPO is Rs 192,660.0.
This IPO will be allotted on Aug 10, 2023.
The refund will be credited to your account on Aug 11, 2023.
The allotted shares will be credited to your demat on Aug 14, 2023.
SBFC Finance Ltd.’s shares listed on the stock exchanges on Aug 16, 2023.