SBFC Finance IPO sees robust booking: Check allotment, listing dates, & grey market premium

SBFC Finance, a non-banking finance organisation expertly managed by professionals, has received a tremendous response to its public issue. Investors who have applied for the offer are currently awaiting notification of their allotment.

By the end of the 10th of August, the IPO programme predicts that the basis of allotment would be finalised. Due to the high number of applications, each qualified investor will receive at least one lot (260 shares) in the allotment.

Share allotment status can be checked by the participants on the BSE website or the IPO registrar's portal.

By August 14, successful investors will have their equity shares transferred to their demat accounts, and by August 11, failed investors will have their refunds deposited into their bank accounts.

Since trading venues will be closed on August 15 in observance of Independence Day, SBFC Finance's public debut will take place on August 16.

From August 3-7, a diverse group of investors showed strong interest in the first public offering of the NBFC that focuses on micro, small, and medium enterprises. For a total of Rs 53,395 crore, they have paid for 936,76 crore in equity shares, out of an offer size of 13.35 crore shares.

High net worth individuals purchased 49.09 times their permitted quota, while qualified institutional buyers bid 192.9 times their quota. Ten and a half times as many reservations were made for the reserved portion of retail investors as were made for the reserved portion of employees.

Because of this, there has been a lot of interest in its shares among unregulated markets. In the grey market, the unofficial market for IPO shares that can be purchased and sold until the listing, its shares were offered at a premium of 70% over the upper price band, analysts said on condition of anonymity.

The offer has a price range of Rs 54-57 per share.

SBFC Finance, which is supported by the Clermont Group and the Arpwood Group, has successfully raised Rs 1,025 crore in its first public offering. Only Rs 600 crore was offered to the public as a fresh issuance, with the remaining amount being sold to investors. Companies owned by the Arpwood Group sold stock through the offer to the public.

The majority of the proceeds from the new offering will go towards strengthening the company's capital foundation in preparation for the inevitable expansion of the business and its assets.

The Mumbai-based NBFC primarily distributes loans with ticket sizes between Rs 0.5 million and Rs 3 million, with secured MSME loans accounting for 80% of the AUM and loans against gold accounting for the remaining 17%. In addition, as of the first quarter of 2023, more than 87% of its AUM had a ticket size in this range.

Promoters owning 80.48 percent of the company are the Clermont Group's SBFC Holdings Pte Ltd and Clermont Financial Pte Ltd, as well as the Arpwood Group's Arpwood Capital and Arpwood Partners Investment Advisors LLP.

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