SBFC Finance files Rs 1,600-cr IPO papers with Sebi

Non-banking finance company SBFC Finance Ltd has filed preliminary papers with capital markets regulator Sebi to raise up to Rs 1,600 crore, through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares aggregating to up to Rs 750 crore and an offer-for-sale (OFS) component aggregating up to Rs 850 crore by promoter selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

The OFS will see the sale of shares to the tune of Rs 398.19 crore by Arpwood Partners Investment Advisors LLP, Rs 275 crore by SBFC Holdings Pte Ltd, Rs 97.72 crore by Arpwood Capital Pvt Ltd and Rs 79.08 crore by Eight45 Services LLP.

Going by the draft papers, the company may explore a pre-IPO placement aggregating to Rs 150 crore. If such placement is undertaken, the size of the public issue will be reduced.

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.

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.

Incorporated in 2017, SBFC Finance provides financing solutions such as loans against property, personal, secured, and gold loans. The firm serves entrepreneurs and the owners of micro, small, and medium-sized enterprises in India.

As of June 2022, SBFC Finance has an expansive footprint in 104 cities, spanning 16 Indian states and two union territories, with 135 branches.

The Mumbai-based company is backed by marquee investors such as Malabar Group, Clermont Group and Arpwood Group.

For the fiscal ending March 2022, the company reported its total income of Rs 530.70 crore and posted a profit after tax (PAT) of Rs 64.52 crore.