SBFC Finance sets IPO price band at Rs 54-57 per share

Investors can bid for a minimum of 260 equity shares and in multiples of 260 shares thereafter.

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26 Aug, 2025 12:21

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Non-banking finance company SBFC Finance has fixed price band at Rs 54-57 per share for its initial public offering. The bidding for the offer will start from August 3 and the closing date would be August 7.

The maiden public issue comprises a fresh issuance of shares worth Rs 600 crore and an offer for sale of Rs 425 crore by promoters.

Promotors Arpwood Partners Investment Advisors LLP, Arpwood Capital, and Eight45 Services LLP are selling shares worth Rs 306.25 crore, Rs 75.16 crore and Rs 43.59 crore respectively via offer for sale.

The company has reserved shares worth Rs 10.25 crore for its employees who will get those shares at a discount of Rs 2 per share to the final offer price.

Investors can bid for a minimum of 260 equity shares and in multiples of 260 shares thereafter. The minimum investment by retail investors would be Rs 14,820 per lot (260 shares) and the maximum they can invest is Rs 1,92,660 for 3,380 shares (13 lots), as they can invest up to Rs 2 lakh in IPO.

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The bidding for the anchor book, a part of qualified institutional buyers, will take place for a day on August 2, a day before the issue opening.

Half of the offer is reserved for qualified institutional buyers, 15 percent for high-networth individuals and the remaining 35 percent for retail investors.

In May, SBFC Finance had raised Rs 150 crore via private placement (pre-IPO placement) by allotting 2.72 crore equity shares to Amansa Investments. After the pre-IPO placement, the company reduced its fresh issue size by Rs 150 crore to Rs 600 crore from Rs 750 crore earlier.

The fresh issue proceeds, excluding issue expenses, are utilised only for augmenting the capital base to meet future capital requirements arising out of the growth of the business and assets.

Also read: Federal Bank's NBFC arm FedFina refiles draft papers for IPO

SBFC Finance focuses mainly on secured MSME loans and loans against gold businesses, with a footprint in 120 cities, with 152 branches. Among MSME-focused NBFCs in India, it claimed that it has one of the highest assets under management growth, at a CAGR of 44 percent during FY19-FY23. In terms of business momentum, it witnessed disbursement growth at a CAGR of 40 percent during the same period.

It has delivered strong growth in net profit at 132 percent in FY23 over FY22 with return on assets growing to 2.92 percent from 1.48 percent and return on equity rising to 9.93 percent from 5.18 percent, but net interest margin dropped to 9.32 percent in FY23 from 9.39 percent in FY22 and 11.73 percent in FY21.

Asset quality improved with the gross non-performing assets (as a percentage of gross advances) falling 31 bps YoY to 2.43 percent and net NPA down 22 bps to 1.41 percent in the year ended March FY23.

SBFC Finance would be the 15th IPO in the current calendar year, after Yatharth Hospital, Netweb Technologies, Utkarsh Small Finance Bank, Senco Gold, Cyient DLM, Ideaforge Technology, HMA Agro Industries, IKIO Lighting, Nexus Select Trust REIT, Mankind Pharma, Avalon Technologies, Udayshivakumar Infra, Global Surfaces, and Divgi TorqTransfer Systems.