SBFC Finance IPO: The company will utilise net proceeds from the issue towards augmenting the company’s capital base to meet its future capital requirements
SBFC Finance IPO: SBFC Finance’s Initial Public Offering (IPO) is available for public subscription from today, August 3, until Monday, August 7. Prior to this, the company concluded the bidding for anchor investors on Wednesday, accumulating Rs 304.43 crore.
Before the IPO launch, the Grey Market Premium (GMP) for SBFC Finance shares surged to Rs 40 per equity share, representing a 70% increase over the upper end of the offer price. The public issue offers equity shares with a face value of Rs 10 each within a price range of Rs 54-57. At the upper end of this price band, the company’s promoters and shareholders aim to raise Rs 1,025 crore through the IPO.
SBFC Finance specialises in providing secured MSME loans and loans against gold, primarily catering to entrepreneurs and small business owners.
According to a report by Moneycontrol, among MSME-focused NBFCs in India, the company has achieved remarkable growth in its Assets Under Management (AUM), with a CAGR of 44 percent during FY19-23.
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On Wednesday, SBFC Finance said it has raised a little over Rs 304 crore from anchor investors ahead of its initial share sale. The company has decided to allocate 5.34 crore equity shares to 37 funds at Rs 57 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE website.
At this price, the company has collected Rs 304.43 crore from anchor investors, as per the circular.
Abu Dhabi Investment Authority, Carmignac Portfolio, Loomis Sayles, Neuberger Berman, Amansa Holdings, Malabar India Fund Ltd and Steadview Capital Master Fund Ltd are among the anchor investors.
Domestic mutual funds, including ICICI Prudential Mutual Fund (MF) SBI MF, HDFC MF, Aditya Birla Sun Life MF and Axis MF have also made investments.
The Rs 1,025 crore-IPO comprises a fresh issue of equity shares aggregating to up to Rs 600 crore and an OFS component aggregating up to Rs 425 crore by existing shareholders.
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Under the OFS, shares will be offloaded by Arpwood Partners Investment Advisors LLP, Arpwood Capital Pvt Ltd, and Eight45 Services LLP.
The company will utilise the net proceeds from the issue towards augmenting the company’s capital base to meet its future capital requirements arising out of the growth of its business and assets.
Earlier, the company had undertaken a private placement of equity shares aggregating to Rs 150 crore in a pre-IPO placement. Following this, the fresh issue size was reduced from Rs 750 crore to Rs 600 crore planned earlier.
After the pre-IPO round, HDFC Mutual Fund (MF), ICICI Prudential MF, and SBI MF invested Rs 90 crore in the company at a share value of Rs 57 per share valuing the company at about Rs 5,400 crore.
ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company are the book-running lead managers to the issue. The equity shares are proposed to be listed on NSE and BSE.
(With PTI Inputs)
