SBFC Finance, the MSME-focused non-banking finance company, is going to finalise the basis of allotment for its IPO shares by the end of August 10. Investors await the allotment status, which can be checked either on the BSE website and the portal of IPO registrar by following few easy steps, instead of going to any stock broker's office.
On the BSE website:
a) Select issue type 'equity' and issue name 'SBFC Finance Limited'
b) Enter either 'Application Number' or 'PAN Number'
c) Check box (I am not a robot), and click on 'Search' button
In case of IPO registrar's portal:
a) Select IPO Name 'SBFC Finance Limited'
b) Select and accordingly enter either 'Application Number', or 'Demat Account' or 'PAN Number'
c) Enter 'Captcha' and finally click on 'Submit' button
After the basis of allotment finalisation, equity shares will be transferred to demat accounts of eligible investors by August 14, while the refunds will be credited to bank accounts of unsuccessful investors by August 11.
And finally the listing of SBFC Finance shares on the BSE and NSE will take place on August 16.
"We have seen strong demand for its shares in the grey market as it traded with 70 percent premium over the upper price band," analysts said on the condition of anonymity.
Analysts cited several reasons for the healthy grey market premium, such as the well-diversified pan India presence, reasonable valuations, professional management team, healthy financials and improving asset quality on stringent credit quality checks.
The strong response to the IPO of private equity company Clermont Group and investment bank Arpwood Group-backed SBFC Finance may also be supporting grey market premium.
The Rs 1,025-crore public issue was subscribed 70.16 times during August 3-7, with qualified institutional buyers (QIBs) providing the maximum support to the issue with bidding 192.9 times the allotted quota. The portion set aside for retail investors was booked 10.99 times and high networth individuals 49.09 times, while employees bought 5.87 times the reserved portion.
The offer, which had a price band of Rs 54-57 per share, was comprised a fresh issue of Rs 600 crore which will be mainly utilised for augmenting the company's capital base to meet future capital requirements arising out of the growth of the business and assets.
Also read: TVS Supply Chain Solutions IPO: 10 key things to know before you buy
The issue also included offer for sale portion of Rs 425 crore, which will go to Arpwood Group, the selling shareholder.
Among the MSME-focused NBFCs in India, SBFC has one of the highest assets under management (AUM) growth, at a CAGR of 44 percent during FY19-FY23, with robust disbursement growth, at a CAGR of 40 percent in the same period, backed by its expansive footprint in 120 cities, with 152 branches.
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