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SBFC Finance IPO

SBFC Finance IPO

  • Status: Closed
  • RHP:
  • ₹ 14,040 / 260 shares

    Minimum Investment

IPO Details

  • Open Date

    03 Aug 2023

  • Close Date

    07 Aug 2023

  • IPO Price Range

    ₹ 54 to ₹ 57

  • IPO Size

    ₹ 1,025 Cr

  • Listing Exchange

    BSE, NSE

  • Listing Date

    16 Aug 2023

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Timeline Subscription Status Objective Financials SWOT FAQ Contacts

IPO Timeline

SBFC Finance IPO Subscription Status

Last Updated: 08 August 2023 12:46 AM by 5Paisa

SBFC Finance Limited is all set to open from 3rd August to 7th August 2023. SBFC Finance is a non-deposit-taking NBFC. The IPO includes a fresh issue of ₹600 crore and an Offer-for-Sale (OFS) of ₹425 crore. The total IPO size is ₹1025 crore. The share allotment date is 10th August, and the IPO will be listed on 16th August on the stock exchanges. The price band is ₹54 to ₹57, and the IPO size is 260 shares.   

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers for this IPO, while KFin Technologies Limited is the registrar. 

Objectives of SBFC Finance IPO

To fund future capital requirements arising out of the growth of the business and assets.
 

SBFC Finance IPO Video:

 

Founded in 2008, SBFC Finance operates as a non-deposit-taking non-banking finance company (NBFC), catering to diverse segments including entrepreneurs, small business owners, self-employed individuals, and salaried/working-class individuals. Their primary offerings include Secured MSME Loans and Loans against Gold. 

As an MSME-focused NBFC in India, SBFC Finance has achieved remarkable growth with their assets under management ("AUM") expanding at a CAGR of 40% from Fiscal 2019 to Fiscal 2022, as per the CRISIL Report.

As of December 31, 2022, SBFC Finance had extended its presence to 105+ cities across 16 states, and 2 union territories, with a network of 137 branches. SBFC Finance enjoys robust backing from esteemed institutional investors like the Clermont Group, Arpwood Group, and Malabar Group, further solidifying their credibility and potential in the financial market.

SBFC’s one of their standout tools is "Leviosa," which is a loan origination platform equipped to efficiently onboard and disburse loans. Additionally, SBFC Finance has established a dedicated "Gold Genie" sales application, which enables gold loan disbursals directly at customers' homes, adding a touch of convenience to their services.

Peer Comparison
●    Aavas Financiers Ltd
●    Aptus Value Housing Finance India Ltd
●    Home First Finance Company India Ltd
●    Five Star Business Finance Limited
●    AU Small Finance Bank Ltd

For More Information:

Webstory on SBFC Finance IPO
SBFC Finance IPO GMP

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY23 FY22 FY21
Revenue 732.81 529.05 507.09
EBITDA 538.99 444.00 397.46
PAT 149.73 64.52 85.01
Particulars (in Rs. Crores) FY23 FY22 FY21
Total Assets 5746.44 4515.03 4231.19
Share Capital - - -
Total Borrowings 4019.17 3227.86 3026.08
Particulars (in Rs. Crores) FY23 FY22 FY21
Net cash generated from / (used in) operating activities -1244.95 -821.64 -275.19
Net cash from / (used in) investing activities 205.91 651.81 375.05
Net cash flow from / (used in) financing activities 1071.00 183.03 186.66
Net increase (decrease) in cash and cash equivalents 31.96 13.20 -86.80

Strengths

1.    SBFC Finance has a PAN India network. 
2.    In the MSME-focused NBFC segment, it enjoys the highest AUM with a growth of 44% CAGR between FY19 AND FY23.. 
3.    The company has a disbursement growth of CAGR 40% between FY21 and FY23. 
4.    Its entire loan portfolio is built through in-house origination, reducing dependence on direct selling agents or connectors. 
5.    The company has a robust liability franchise, maintaining a healthy financial position with a low cost of funds.
6.    It has consistent financial performance, supported by sustainable and profitable growth.
 

Risks

1.    Any default by borrowers can impact the business negatively. 
2.    Interest rate risk and interest rate volatility can impact net interest income and net interest margin.
3.    Cash flow from operations is negative which can repeat. 
4.    Negative credit rating can impact the overall business. 
 

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FAQs

The minimum lot size of SBFC Finance is 260 shares, and the investment required is ₹14,040.

The price band of SBFC Finance IPO is ₹54 to ₹57.

SBFC Finance IPO opens on 3rd August and closes on 7th August 2023.
 

The size of the SBFC Finance IPO is ₹1025 crore.

The allotment date of the SBFC Finance IPO is 10th of August.

The listing date of SBFC Finance IPO is 16th of August.

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers for SBFC Finance IPO. 

SBFC Finance Limited plans to utilize the raised capital from the IPO to fund future capital requirements arising out of the growth of the business and assets. 
 

To apply for SBFC Finance IPO, follow the steps given below:

●    Login to your 5paisa account and select the issue in the current IPO section    
●    Enter the number of lots and the price at which you wish to apply for the SBFC Finance IPO.    
●    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange.    
●    You will receive a mandate notification to block funds in your UPI app.