The Rs 1,025-crore initial public offering of SBFC Finance received a strong response to be subscribed nearly 2 times on Day 1. The offer will close on August 7. The NBFC is planning to raise Rs 1,025 crore via a public issue, which comprises a fresh issuance of shares worth Rs 600 crore and an offer-for-sale (OFS) of Rs 425 crore by the promoters.

The price band for the offer has been set at Rs 54-57.

Investors can buy a minimum of 260 equity shares in the IPO, and in multiples of 260 shares, thereafter.

The issue received bids for 25,47,12,900 shares, against the offered 13,35,12,817 equity shares, according to data available with the stock exchanges. Overall, the issue was subscribed 1.91 times on the first day of bidding. 

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 non-institutional investors, and not less than 35 per cent will be available for allocation to retail individual investors. The offer also includes reservation for a subscription by eligible employees. 

The non-institutional investors’ portion was the most subscribed at 4.12 times, followed by the retail portion at 2.06 times. The employee portion was subscribed 1.10 times, whereas, the qualified institutional buyer portion was subscribed 0.03 times. 

Promoter entities Arpwood Partners Investment Advisors LLP will sell shares worth Rs 306.25 crore, Arpwood Capital Rs 75.16 crore, and Eight45 Services LLP Rs 43.59 crore via OFS.

Also read: SBFC Finance IPO: Promising deal to consider

The IPO Committee of the board of directors has finalised allocation of 5,34,07,893 equity shares to anchor investors at ₹57 per equity share

Among the anchor investors 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 including ICICI MF, SBI MF, HDFC MF, Amansa, Malabar and Steadview Capital participate in the offer.

SBFC Finance will utilise the fresh issue proceeds, excluding IPO expenses, mainly to augment 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 Ltd, Axis Capital Ltd, and Kotak Mahindra Capital Company Ltd are the book-running lead managers and KFin Technologies Ltd the registrar to the offer. The equity shares are proposed to be listed on the BSE and NSE. 

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