IPO Details
Bidding Dates
03 Aug '23 - 07 Aug '23
Minimum Investment
₹14,820 / 1 Lots (260 Shares)
Price Range
₹54 - ₹57
Maximum Investment
₹192,660 / 13 Lots (3380 Shares)
Retail Discount
Not Applicable
Issue Size
₹1,025.00 Cr
Investor category and sub category
Qualified Institutional Buyers | Non-Institutional Investors | Retail Individual Investors | Employees |SBFC Finance IPO Dates
Important dates with respect to IPO allotment and listing
IPO Opening Date
Aug 3, 2023
IPO Closing Date
Aug 7, 2023
Basis of Allotment
Aug 10, 2023
Initiation of Refunds
Aug 11, 2023
Credit of Shares to Demat Account
Aug 14, 2023
IPO Listing Date
Aug 16, 2023
UPI Mandatory Expiry Date
Aug 7, 2023
SBFC Finance Subscription Details
| Date | QIB | NII | Retail | EMP | Total |
|---|---|---|---|---|---|
Day 1Aug 3, 2023 |
0.03 | 4.37 | 2.22 | 1.19 | 2.05 |
Day 2Aug 4, 2023 |
0.54 | 7.45 | 3.63 | 1.90 | 3.54 |
SBFC Finance Subscription Live Status
| Investor Category | Subscription (Times) |
|---|---|
| Qualified Institutions Buyers | 0.54 |
| Non-Institutional Buyers | 7.45 |
| Retail Investors | 3.63 |
| Employees | 1.90 |
| Total | 3.54 |
About SBFC Finance Ltd.
SBFC Finance Limited (SBFC) was incorporated on January 25, 2008. It is a systematically important, non-deposit-taking, non-banking finance company that offers secured MSME loans and loans against gold. The company focuses on disbursing loans with a ticket size of ₹0.50 million to ₹3.00 million.
Their target customers are tier II and tier III cities. The majority of their borrowers are self-employed individuals, entrepreneurs, small business owners, and salaried and working-class individuals. 100% of their loan portfolio originates in-house, reducing their limits on direct selling agents. They have a sales team of 1,911 personnel to source customers based on an in-house sourcing model, which involves repeat customers, branch-led local marketing efforts, or walk-ins.
In the category of MSME-focused NBFCs, SBFC Finance has one of the highest Assets Under Management (AUM), which grew at a CAGR of 39.17% from ₹16,482.07 million on March 31, 2020, to ₹31,921.81 million on March 31, 2022. In December 2022, SBFC Finance incorporated a subsidiary, SBFC Home Finance Pvt. Ltd, to commence its housing finance business.
SBFC Finance Ltd IPO Details
SBFC Finance Ltd IPO is worth ₹1,025.00 crore with both fresh issue and offer for sale components. The issue is priced at ₹54 to ₹57 per share. Retail investors can bid for the SBFC Finance Limited IPO, which will open on August 3, 2023. SBFC Finance Limited’s IPO will list on the NSE and BSE exchanges on August 16, 2023.
SBFC Finance Ltd IPO Objective
The key objectives of the IPO are the following:
- To augment the capital base of the company.
- Finance offer-related expenses.
Noteworthy Highlights of SBFC Finance Ltd
- SBFC has a diversified pan-India presence with an extensive network. As of March 31, 2023, they operate in 120 cities across 16 Indian states and 2 union territories, with 152 branches. As of the same date, their AUM is diversified across India - 30.84% in the North, 38.53% in the South, and 30.63% in the West and East together.
- As of March 31, 2023, SBFC’s average yield on Gross Loan Book was 15.91%. Of this, secured MSME Loans accounted for 15.89% and loans against gold for 15.64%.
- The average secured MSME loan size offered by the institution was less than ₹10 lakhs in FY 2022. The level of NPA was at 2.35%, which is lower than the sector average NPA of 3.4% on an average loan size of ₹5 - ₹30 lakh.
Competitive Peers
The other players in the segment as recognised by the company are -
- Aavas Financiers Ltd
- Home First Finance Company India Ltd
- Aptus Value Housing Finance India Ltd
- AU Small Finance Bank Ltd
SBFC Finance Ltd. Company Financials
| Particulars | Year ending on March 31, 2023 (₹ Lakh) | Year ending on March 31, 2022 (₹ Lakh) | Year ending on March 31, 2021 (₹ Lakh) |
|---|---|---|---|
| Total Income | 7,403.61 | 5,307.02 | 5,115.33 |
| Profit After Tax (PAT) | 1,497.36 | 645.21 | 850.10 |
| Tangible Net Worth | 14,668.76 | 10,267.75 | 9,447.16 |
| Earnings Per Share (Basic) | 1.71 | 0.81 | 1.09 |
| Total Borrowings | 37,458.33 | 29,488.18 | 27,725.52 |
Know before investing
Strengths
3-
The company has exhibited a robust financial track record in increasing its AUM and keeping its NPA under control.
-
The company has increased its profit after tax from ₹850.10 on March 31, 2021, to ₹1,497.36 on March 31, 2023.
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It maintains a low level of AUM per state for efficient distribution of risk.
Risks
3-
The company is exposed to the risk of non-payment of loans and an increase in NPA.
-
There are certain FIRs filed against the company or the employees by the clients.
-
If the firm fails to recover the full value of the collateral, that might impact its profitability.
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SBFC Finance Ltd IPO FAQs
The SBFC Finance Ltd IPO fresh issue and Offer for Sale worth ₹1,025.00 crore. The issue is priced at ₹54 to ₹57 per share. The IPO will open on August 3, 2023.
The Basis of Allotment will happen on Thursday, August 10, 2023.
The IPO subscription window will open on August 3, 2023.
SBFC Finance Ltd IPO will list on NSE and BSE exchanges on August 16, 2023.
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app
- Validate with an OTP
- Enter your application number, DP ID, and PAN number into the app
- Click on ‘Submit’
Listing gains cannot be ascertained before the listing of the IPO on the stock exchange, which is Thursday, August 16, 2023, for SBFC Finance Ltd.
The bank will only block the amount initially in your account. Under the new system, the money isn’t debited until the stocks are allotted to you.
You must complete the payment process by logging in to your UPI handle and approving the payment mandate.
You can submit only one application using your PAN card.
