SBFC Finance, a non-banking finance company catering to Micro, Small, and Medium Enterprises (MSMEs), is gearing up to finalize the allocation of shares for its eagerly awaited Initial Public Offering (IPO). The key date for this allotment process, referred to as the SBFC Finance IPO allotment date, is set to conclude by the end of August 10. Investors are eagerly awaiting updates on the SBFC IPO allotment status, which can be conveniently checked through straightforward steps on either the official BSE website or the dedicated portal of the IPO registrar. This user-friendly method eliminates the need to physically visit a stock broker’s office.
For those checking on the BSE website:
- Opt for the ‘equity’ issue type and locate ‘SBFC Finance Limited’ as the issue name.
- Input either the ‘Application Number’ or ‘PAN Number’ as requested.
- Complete a simple ‘I am not a robot’ verification, and then initiate the search by clicking the designated ‘Search’ button.
Alternatively, for checking on the IPO registrar’s portal:
- Select the relevant IPO Name, which is ‘SBFC Finance Limited’.
- Depending on the information you have available, provide the ‘Application Number’, ‘Demat Account’ details, or ‘PAN Number’.
- Complete the security ‘Captcha’ entry and finalize the process by clicking the ‘Submit’ button.
As the SBFC Finance IPO allotment date wraps up, eligible investors can anticipate their equity shares being seamlessly transferred to their demat accounts by August 14. Similarly, investors who were not allotted shares will find their refunds credited to their bank accounts by August 11.
The culmination of this process will pave the way for the listing of SBFC Finance shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), an event scheduled to unfold on August 16.
The grey market has already shown significant interest in SBFC Finance shares, with trading activity indicating a remarkable 70 percent premium over the upper price band. This positive reception is attributed to several factors including the company’s expansive pan India presence, attractive valuations, proficient management team, strong financial performance, and improved asset quality resulting from stringent credit assessments.
Furthermore, the enthusiastic response to the IPO of SBFC Finance, supported by the Clermont Group and Arpwood Group, might also be a driving factor behind the impressive grey market premium.
The IPO, valued at Rs 1,025 crore, witnessed an extraordinary oversubscription rate of 70.16 times during the period from August 3 to August 7. Qualified institutional buyers (QIBs) took the lead with a substantial subscription rate of 192.9 times the allocated quota. Retail investors showed keen interest with a subscription rate of 10.99 times, while high net worth individuals subscribed at 49.09 times the reserved portion. Employees also displayed enthusiasm, subscribing at a rate of 5.87 times the allocated portion.
The IPO featured a price band ranging between Rs 54 and Rs 57 per share, comprising a fresh issue of Rs 600 crore intended to fortify the company’s capital base for future growth needs. Additionally, there was an offer for sale segment of Rs 425 crore, benefiting the selling shareholder, Arpwood Group.
Among India’s MSME-focused NBFCs, SBFC stands out with remarkable accomplishments including an impressive Asset Under Management (AUM) growth of 44 percent Compound Annual Growth Rate (CAGR) between FY19 and FY23. This was complemented by robust disbursement growth of 40 percent CAGR during the same period, further reinforced by the company’s extensive presence spanning 120 cities and 152 branches.
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