SBFC Finance, a non-banking finance company focused on micro, small and medium enterprises (MSMEs), is set to finalize the basis of allotment for its IPO shares by August 10. Investors can easily check the allotment status on BSE website. or IPO registrar portal, without the need of visiting the stockbroker’s office.
Once the basis of allotment is decided, eligible investors can expect the equity shares to be transferred to their demat accounts by August 14. Refunds will be credited to the bank accounts of unsuccessful investors by August 11.
The listing of SBFC Finance shares on BSE and NSE is scheduled to happen on August 16. SBFC Finance’s IPO generated strong demand in the gray market, where it traded at a 70 per cent premium to the upper price band. Analysts attribute this to several factors, including the company’s well-diversified presence across India, reasonable valuations, professional management team, healthy financial position and improving asset quality.
The strong response to the IPO could also be backed by private equity firm Claremont Group and investment bank Arpwood Group. The public issue was subscribed 70.16 times during the IPO subscription period from August 3 to 7. Qualified Institutional Buyers (QIBs) showed the highest support by bidding 192.9 times the allotted quota. Retail investors subscribed 10.99 times, high net worth individuals 49.09 times and employees oversubscribed 5.87 times the reserved portion.
The price band of the IPO was Rs 54-57 per share and included a fresh issue of Rs 600 crore to raise the company’s capital base, as well as an offer for sale of a portion of Rs 425 crore to Arpwood Group, the selling shareholder. Was. SBFC Finance is one of the MSME-focused NBFCs in India with a high Assets Under Management (AUM) growth rate of 44 percent and strong disbursement growth rate of 40 percent, backed by its presence across 120 cities with 152 branches .