Strong Listing | SBFC Finance closes with 62% premium on debut

SBFC Finance, a non-banking finance company that focuses on micro, small, and medium-sized enterprises (MSMEs), gained 62 percent on its first day of trading on August 16, despite volatility in the equity markets.

As anticipated, the stock opened at Rs 82, up 44 percent from its issuance price of Rs 57, on the NSE. It maintained its opening price, which was also its day's low, throughout the session and reached a 67.5 percent intraday high of Rs 95.45.

At market close, the stock was up 61.75 percent to Rs 92.20 on the NSE and up 61.77 percent to Rs 92.21 on the BSE.

SBFC Finance traded 20,44 crore equity shares on the NSE and 1.09 crore shares on the BSE in terms of volume.

Last week, the professionally managed NBFC, backed by illustrious institutional investors including Clermont Group, Arpwood Group, and the Malabar Group, raised Rs 1,025 crore through its initial public offering. The offer price range was Rs 54-57 per share.

SBFC Finance focuses primarily on MSME loans, which account for over 80% of its total business, while the gold loans segment accounts for approximately 17%.

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The company has 152 branches in 120 locations spanning 16 states and 2 union territories. In addition, the company is well-diversified, with 31% of its AUM (assets under management) in the North, 38% in the South, and the rest in the West and East.

The AUM as of March FY23 was Rs 4,943 crore, growing at a robust rate of 44% CAGR during FY19-FY23, while disbursements grew at a rate of 40% CAGR during the same period.