SBFC Finance IPO to kick in from Aug 3; fixes price band at Rs 54-57/ share

SBFC Finance IPO, SBFC Finance IPO opening date: Non-banking finance company SBFC Finance Ltd on Monday said it has set a price band of Rs 54-57 a share for its Rs 1,025-crore initial share sale. The initial public offering (IPO) will open on August 3 for subscription and conclude on August 7, the company announced. The IPO comprises a fresh issue of equity shares aggregating up to Rs 600 crore and an offer-for-sale (OFS) component aggregating up to Rs 425 crore by existing shareholders.

Under the OFS, shares will be offloaded by Arpwood Partners Investment Advisors LLP, Arpwood Capital Pvt Ltd, and Eight45 Services LLP. 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. Investors can bid for a minimum of 260 equity shares and in multiples of 260 equity shares thereafter.

Earlier, the company had undertaken a private placement of equity shares aggregating to Rs 150 crore in a pre-IPO placement. Following this, the fresh issue size was reduced from Rs 750 crore to Rs 600 crore. Last week, HDFC Mutual Fund (MF), ICICI Prudential MF, and SBI MF invested Rs 90 crore in the company at a share value of Rs 57 per share valuing the company at about Rs 5,400 crore.

SBFC Finance

SBFC Finance, which primarily caters to customers in tier II and tier III cities, has a presence in 120 cities across 16 Indian states and two union territories, operating through a network of 152 branches as of March 2023. The NBFC's revenue from operations shot up by 38.51 per cent from Rs 529 crore in fiscal 2022 to Rs 733 crore in fiscal 2023. Profit after tax climbed from Rs 64.52 crore in fiscal 2022 to Rs 150 crore in fiscal 2023.

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.

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