Professionally managed non-banking finance company SBFC Finance has garnered a huge response to its public issue. Investors, who have participated in the offer, are now waiting to know their allotment status.
The finalisation of the basis of allotment of the IPO shares will take place by the end of August 10, according to the IPO schedule. Given the robust subscription numbers, the allotment will be done on a proportionate basis and eligible investors will get at least one lot (260 shares).
The participants can check their share allotment status either on the BSE website or the portal of IPO registrar.
Equity shares will be transferred to demat accounts of successful investors by August 14, while the unsuccessful investors will get refunds in their bank accounts by August 11.
SBFC Finance will finally debut on the bourses on August 16 as the markets will remain closed on 15th for the Independence Day.
The initial public offering of the MSME-focused NBFC was subscribed 70.16 times during August 3-7 with strong participation from all kinds of investors. They have bought 936.76 crore equity shares against an offer size of 13.35 crore shares, which were worth Rs 53,395 crore.
Qualified institutional buyers were very aggressive, bidding 192.9 times the allotted quota, while high networth individuals had bought 49.09 times the portion set aside for them. The reserved portion of retail investors and employees were booked 10.99 times and 5.87 times, respectively.
As a result, there has been a lot of interest in its shares from grey market investors. Its shares were available at a 70 percent premium over the upper price band in the grey market, an unofficial market for IPO shares which can be bought and sold till the listing, analysts said on anonymity.
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The price band for the offer is set at Rs 54-57 per share.
Clermont Group and Arpwood Group-backed SBFC Finance has raised Rs 1,025 crore from its maiden public issue. The fresh issue portion in the IPO was Rs 600 crore and the rest was an offer for sale. Arpwood Group-owned firms offloaded shares through the offer-for-sale.
The company will utilise the fresh issue proceeds mainly for augmenting its capital base to meet future capital requirements arising out of the growth of the business and assets.
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The Mumbai-headquartered NBFC, which offers secured MSME loans (contributing 80 percent to its AUM of Rs 4,943), and loans against gold (17 percent to AUM), focuses more on disbursing the loans with a ticket size in the range of Rs 0.5 million to Rs 3 million. And as of March 2023, over 87 percent of its AUM had a ticket size within this range.
Corporate promoters Clermont Group-owned firms SBFC Holdings Pte Ltd and Clermont Financial Pte Ltd, and Arpwood Group-owned Arpwood Capital and Arpwood Partners Investment Advisors LLP hold 80.48 percent shareholding in the company.
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