The ₹1,025-crore initial public offering of SBFC Finance that saw an overwhelming response so far will close today for subscription. The NBFC is planning to raise ₹1,025 crore via public issue, which comprises a fresh issuance of shares worth ₹600 crore and an offer for sale (OFS) of ₹425 crore by promoters.
The price band for the offer has been set at ₹54-57 per share.
Investors can buy a minimum of 260 equity shares in the IPO and in multiples of 260 shares thereafter.
The issue received bids of 95.05 crore shares against the offered 13.35 crore shares, according to the data available on the stock exchanges. Overall, the issue was subscribed 7.52 times
The offer is being made through the book-building process, wherein not more than 50 per cent of the offer will be available for allocation to Qualified Institutional Buyers, not less than 15 per cent for allocation to non-institutional investors, and not less than 35 per cent will be available for allocation to retail individual investors. The offer also includes a reservation for a subscription by eligible employees.
The Non-Institutional investors’ portion was the most subscribed with 12.95 times, followed by the Retail portion with 4.93 times. The employee portion was subscribed 2.44 times, whereas, Qualified Institutional Buyer portion was subscribed 6.71 times.
Also read: SBFC Finance IPO: Promising deal to consider
Promoter entities Arpwood Partners Investment Advisors LLP will be selling shares worth ₹306.25 crore, Arpwood Capital ₹75.16 crore, and Eight45 Services LLP ₹43.59 crore via OFS.
As part of IPO process, the company has mopped ₹304 crore by finalising allocation of 5,34,07,893 Equity Shares to Anchor Investors at ₹57 a share.
Anchor investors included both domestic and foreign investors. Among them are Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, and Neuberger Berman, among others. The anchor list also saw existing investors ICICI MF, SBI MF, HDFC MF, Amansa, Malabar and Steadview Capital participating in the offer.
SBFC Finance will utilise fresh issue proceeds, excluding IPO expenses, mainly for augmenting its capital base to meet future capital requirements arising out of the growth of the business and assets, while the offer for sale money will go to selling shareholders.
Delhi-NCR-based SBFC Finance Ltd, is a systemically important, non-deposit taking non-banking finance company (“NBFC-ND-SI”) offering Secured MSME Loans and Loans against Gold.
ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book-running lead manager and KFin Technologies Limited is the Registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.