SBFC Finance Rs 1025 cr IPO opens on 3 August; price-band at Rs 54-57 per share

SBFC Finance Rs 1025 cr IPO opens on 3 August; price-band at Rs 54-57 per share

SBFC Finance Ltd, a non-banking finance company, has disclosed the price range of Rs 54-57 per share for its upcoming Rs 1,025-crore initial public offering (IPO). The subscription for the IPO will be open from August 3 to August 7, as per the company’s announcement.

The IPO consists of a fresh issue of equity shares worth up to Rs 600 crore and an offer-for-sale (OFS) component of up to Rs 425 crore by existing shareholders. Arpwood Partners Investment Advisors, Arpwood Capital, and Eight45 Services will be offloading their shares under the OFS.

Prior to the IPO, SBFC Finance undertook a private placement of equity shares, raising Rs 150 crore, leading to the reduction of the fresh issue size from Rs 750 crore to Rs 600 crore. HDFC Mutual Fund (MF), ICICI Prudential MF, and SBI MF recently invested Rs 90 crore in the company at a share value of Rs 57 each, valuing SBFC Finance at approximately Rs 5,400 crore.

SBFC Finance primarily serves customers in tier II and tier III cities, operating in 120 cities across 16 Indian states and two union territories, with a network of 152 branches as of March 2023. In terms of financial performance, the company’s revenue from operations witnessed significant growth, increasing by 38.51% from Rs 529 crore in fiscal 2022 to Rs 733 crore in fiscal 2023. Additionally, the profit after tax surged from Rs 64.52 crore in FY22 to Rs 150 crore in FY23. The book-running lead managers for the IPO are ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company, while the equity shares are proposed to be listed on NSE and BSE.

(With agency inputs.)