SBFC Finance Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the SBFC Finance Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹57
Per ShareLot Size
260 Shares
Minimum Investment
₹14,820
Issue Size
₹1,025 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
SBFC Finance Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
80.48%
Issue Type
Book Building
ISIN
INE423Y01016
About the Company
SBFC Finance Limited is a systemically important, non-deposit taking non-banking financial company offering loans including secured Micro, Small and Medium Enterprises loans and loans against gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working class individuals. Among MSME-focused NBFCs in India, the company has one of the highest assets under management growth, at a CAGR of 44% in the period from Fiscal 2019 to Fiscal 2023. The Company has also witnessed healthy disbursement growth, at a CAGR of 40% between Fiscal 2021 and Fiscal 2023.
Industry Overview
In the Indian financial system, NBFCs have grown in importance by catering to customers in underbanked regions or those who would not be catered to by traditional financial institutions, due to absence of credit history or lack of proper collateral records. NBFC credit is expected to grow at 12% - 14% between Fiscal 2023 and Fiscal 2025. Credit growth is expected to be driven by the retail vertical, including housing, auto and microfinance segments. Rapid revival in the economy is expected to drive consumer demand in Fiscal 2024, leading to healthy growth for NBFCs.
Company History
SBFC Finance Limited was originally incorporated on January 25, 2008 at Mumbai, India as APE Finserve Private Limited', a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation issued by the Registrar of Companies, Maharashtra at Mumbai ("RoC"). The Board of the Company approved the change in the name of the Company from `MAPE Finserve Private Limited' to `Small Business Fincredit India Private Limited' by their resolution dated July 3, 2017, which was thereafter approved by the Shareholders of the Company through their resolution dated August 24, 2017 and a fresh certificate of incorporation, under the Companies Act, 2013, was issued by the RoC on August 31, 2017. Thereafter, the Board of the Company approved the change in the name of the Company from `Small Business Fincredit India Private Limited' to `SBFC Finance Private Limited' by their resolution dated October 24, 2019, for the ease of reference that a shorter name provides, which was thereafter approved by the Shareholders of the Company through their special resolution dated December 11, 2019 and a fresh certificate of incorporation, under the Companies Act, 2013, was issued by the RoC on January 13, 2020. Subsequently, the Company was converted into a public limited company under the Companies Act, 2013 and consequently the name of the Company was changed from `SBFC Finance Private Limited' to `SBFC Finance Limited' pursuant to a resolution passed by the Board of the Company on September 21, 2022 and a special resolution passed by the Shareholders of the Company on September 23, 2022, and a fresh certificate of incorporation dated September 30, 2022 was issued by the RoC.
Products & Services
- The Company is a systemically important, non-deposit taking non-banking financial company offering loans including secured Micro, Small and Medium Enterprises loans and loans against gold.
Growth Strategy
- Leverage our pan-India network to deepen its penetration in its target customer segment.
- Expand its product portfolio through offering affordable housing finance to its target customer segment, utilising its existing network.
- Diversify its source of borrowings and improve operating leverage.
- Utilize technology to drive operational efficiency.
Customer Base
Entrepreneurs, small business owners, self-employed individuals, salaried and working class individuals.
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 179,863,285 equity shares^ of face value of Rs. 10 each ("Equity Shares") of SBFC Finance Limited ("Company" or the "Issuer") for cash at a price of Rs. 57 per equity share# (including a share premium of Rs. 47 per equity share) (the "Offer Price") aggregating to Rs. 1025.00 crores^# ("Offer") comprising a fresh issue of 105,301,883 equity shares^ aggregating to Rs. 600.00 crores^# (the "Fresh Issue") and an offer for sale of 74,561,402 equity shares^ by Arpwood Partners Investment advisors llp, Arpwood Capital Private Limited and Eight45 Services llp ("Promoter Selling Shareholders") (aggregating to Rs. 425.00 crores ("Offered Shares") ("offer for Sale", and together with the fresh issue, the "Offer"). The offer includes a reservation of 1,863,636 equity shares^, aggregating to Rs. 10.25 crores^# (the "Employee Reservation Prtion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 16.90% and 16.73%, respectively, of the post-offer paid-up equity share capital of the company. The company, in consultation with the promoter selling shareholders and the book running lead managers, has undertaken a private placement of 27,272,727 equity shares for cash consideration aggregating to Rs. 150.00 crores (the "pre-ipo placement"). The size of the fresh issue has been reduced by Rs. 150.00 crores and accordingly, the size of the fresh issue is aggregating to Rs. 600.00 crores. The offer price is Rs. 57# per equity share and is 5.7 times the face value of the equity shares. ^Subject to finalisation of basis of allotment #A discount of Rs. 2 per equity share was offered to eligible employees bidding in the employee reservation portion.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Diversified pan-India presence with an extensive network to cater to its target customer segment;
- 100% in-house sourcing, leading to superior business outcomes;
- Comprehensive credit assessment, underwriting and risk management framework;
- Extensive on-ground collections infrastructure leading to maintenance of robust asset quality;
- Healthy liability franchise with low cost of funds;
- The risk of non-payment or default by its borrowers may adversely affect the company business, results of operations and financial condition.
- The company depends on the accuracy and completeness of information provided by its customers and certain third party service providers and its reliance on any erroneous or misleading information may affect its judgement of their creditworthiness, as well as the value of and title to the collateral.
- The quality of the company portfolio may be impacted due to higher levels of NPAs and its business may be adversely affected if the company is unable to provide for such higher levels of NPAs.
- The company inability to assess and recover the full value of collateral, or amounts outstanding under defaulted loans in a timely manner, or at all, could adversely affect the company business, results of operations and financial condition.
- The company require substantial capital for its business and any disruption in the company sources of capital could have an adverse effect on its business, results of operations and financial condition.