SBFC Finance shares sink after 3.9% equity changes hands via multiple block deals
At around 1:32 p.m., shares of SBFC Finance traded 7.08 per cent, or Rs 6.49, lower at Rs 85.17 apiece. The market capitalisation of the company stood at Rs 9,124.91 crore at around the same time.
Shares of SBFC Finance on March 7 slipped over 12 per cent, touching their 52-week low of Rs 80.15 apiece. The stock snapped a four-session winning streak and slipped after multiple block deals took place.
At around 1:32 p.m., shares of SBFC Finance traded 7.08 per cent, or Rs 6.49, lower at Rs 85.17 apiece. The market capitalisation of the company stood at Rs 9,124.91 crore at around the same time.
As per Zee Business Research, around 4.2 crore shares of SBFC Finance, amounting to 3.9 per cent equity, changed hands on March 7.
Aditya Goela, CFA, Co-Founder of Goela School of Finance, said, "When a company goes public, initial valuations tend to be optimistic. However, once the IPO is listed, market forces take over, leading to a more realistic price discovery. Thus, high initial valuations can often lead to a decline in stock prices, as seen in the case of SBFC Finance."
Goela's technical analysis shows SBFC Finance in a strong range, making it a volatile stock for the short to medium term.
Shares of SBFC Finance were listed on the exchanges in November 2023 at Rs 82 apiece; since then, the stock has lost over 3 per cent. The issue price of the stock was Rs 57 apiece.
About SBFC Finance
Incorporated in 2008, SBFC Finance Limited is a systemically important, non-deposit-taking, non-banking finance company (NBFC). The primary customer base of the company includes entrepreneurs, small business owners, self-employed individuals, and salaried and working-class individuals.
SBFC provides its services in the form of secured MSME loans and loans against gold.
SBFC Finance tends to extend its services to entrepreneurs and small business owners who are underserved or unserved by traditional financial institutions like banks, as per the company.
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