Finally, SBFC Finance shares will be listed on the BSE and NSE on August 16.
SBFC Lending, a non-banking lending firm focused on MSME, plans to settle the basis of allotment for its IPO shares by the end of August 10. Investors are awaiting the allotment status, which can be verified on the BSE website and the portal of the IPO registrant by following a few simple procedures rather than visiting any stock broker’s office.
According to the BSE website:
a) Choose the ‘equity’ issuance type and the ‘SBFC Finance Limited’ issue name.
b) Type in either the ‘Application Number’ or the ‘PAN Number’.
c) Tick the box (I am not a robot) and then click the ‘Search’ button.
In the case of an IPO registrar’s website:
a) Choose ‘SBFC Finance Limited’ as the IPO name.
b) Choose and input either ‘Application Number’, ‘Demat Account’, or ‘PAN Number’.
c) Fill out the ‘Captcha’ and then click the ‘Submit’ button.
Following the completion of the basis of allotment, equity shares will be transferred to qualifying investors’ demat accounts by August 14, while refunds will be refunded to failed investors’ bank accounts by August 11.
Finally, on August 16, SBFC Finance shares would be listed on the BSE and NSE.
“We have seen strong demand for its shares in the grey market, where it traded at a 70% premium over the upper price band,” analysts stated on condition of anonymity.
Analysts attributed the substantial grey market premium to a number of factors, including the company’s well-diversified pan-India footprint, affordable valuations, experienced management team, sound financials, and improved asset quality based on tough credit quality checks.
The positive response to the initial public offering (IPO) of private equity firm Clermont Group and investment bank Arpwood Group-backed SBFC Finance may potentially be bolstering the grey market premium.
The Rs 1,025-crore public offer was subscribed to 70.16 times between August 3 and 7, with qualified institutional buyers (QIBs) paying 192.9 times the permitted quota. Employees purchased 5.87 times the reserved amount, whereas retail investors bought 10.99 times and high net-worth people bought 49.09 times.
The offer, which had a price band of Rs 54-57 per share, included a fresh issuance of Rs 600 crore, which will be used primarily to enhance the company’s capital base to meet future capital requirements deriving from the company’s expansion and assets.
The issuance also contained an offer for sale part of Rs 425 crore, which would go to the selling shareholder, Arpwood Group.
Among India’s MSME-focused NBFCs, SBFC has one of the greatest assets under management (AUM) growth rates, at a CAGR of 44 percent between FY19 and FY23, with solid disbursement growth at a CAGR of 40 percent over the same time, supported by its vast network in 120 cities and 152 locations.
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