SBFC IPO aims to raise INR 1200 crore, with a fresh issue of INR 750 Crore and an offer for sale (OFS) of INR 450 Crore by the promoters. The IPO’s main objective is to use the Net Proceeds to increase its capital base to meet future capital requirements emerging from the company’s expansion and assets.
SBFC IPO – Important Details
| SBFC IPO Date | Aug 3, 2023 to Aug 7, 2023 |
| SBFC IPO Listing Date | Aug 16, 2023 |
| SBFC IPO Price | ₹54 to ₹57 per share |
| SBFC IPO Lot Size | 260 Shares |
| SBFC IPO Total Issue Size | Approx ₹1200 Crores |
| SBFC IPO Basis of Allotment | Thursday, 10 August 2023 |
| SBFC IPO Initiation of Refunds | Friday, 11 August 2023 |
| SBFC IPO Credit of Shares to Demat | Monday, 14 August 2023 |
| SBFC IPO Issue Type | Book Built Issue IPO |
| SBFC IPO Listing At | BSE, NSE |
SBFC IPO – Company Profile
SBFC is a Non-banking Finance Company (NBFC) that was first established in 2008. It is a non-deposit-taking NBFC that serves a wide range of customers, including entrepreneurs, small business owners, self-employed people, and salaried/working-class people.
SBFC’s main products are Secured MSME Loans and Loans against Gold. According to the CRISIL Report, SBFC Finance has experienced outstanding development as an MSME-focused NBFC in India, with assets under management (“AUM”) increasing at a CAGR of 40% from Fiscal 2019 to Fiscal 2022.
SBFC IPO – Objective
The key objective of SBFC’s IPO is to increase our company’s existing level of capital. The company also aims to:
Buying and Selling of Shares: To undertake and provide services related to buying, selling, and dealing in shares and securities of corporate bodies, whether listed or unlisted on stock exchanges, to provide information, recommendations, advisory, and consultancy services to any person through agents, franchises, newsletters, circulars, mailers, and other such print and electronic mediums including Internet, Website, Portals, or by any other means for investments, trading dealings shares and securitization.
Facilitator of Services: SBFC seeks to provide services as brokers, distributors, commission agents, corporate agents, and so on in order to carry out the e-commerce or otherwise business of retail and institutional distribution of Mutual Fund schemes, insurance policies, and other financial goods.
Borrow and Lend Money: To borrow money with or without security and/or to raise money by issuing or selling bonds, mortgages, debentures, or debenture-stock of the company, whether perpetual or otherwise, and to apply any money so raised to any of the company’s objectives, and to advance and lend money and assets of all kinds on such terms as may be arranged subject to Section 58-A of the Companies Act, 1956, and the relevant RBI Directions.
SBFC IPO – Risks And Challenges
Investing in IPOs comes with its own unique set of risks and challenges. These are some of the most significant risks and challenges associated with an SBFC IPO:
Non-Payment Risks
The possibility of the borrowers not making their payments or defaulting on their loans might have a negative impact on the company’s overall results of operations and financial situation. Self-employed individuals make up 81.58% of the total AUM of clients holding Secured MSME Loans as of December 31, 2022.
During the period from April 1, 2020, and ending on December 31, 2022, 79.31% of the loans disbursed (in terms of the total amount) by SBFC were made to self-employed customers, and the total value of these loans was ₹28,338.64 million. In addition to this, a significant portion of the loans are made to MSMEs. Customers who are self-employed or who work for a micro, small, or medium-sized enterprise are sometimes seen as higher risk than big corporate borrowers. This is because these types of businesses are more susceptible to irregular cash flow due to unfavorable economic conditions.
Information Accuracy
SBFC relies on the quality and completeness of the information given by their customers and some third-party service providers, and their reliance on any information that is inaccurate or misleading may have an effect on the evaluation of their creditworthiness, as well as the value of the collateral and title to it.
NPA’s Level
The quality of the portfolio may suffer as a result of increased levels of NPAs, and the operations of SBFC will suffer as well if they are unable to make up for such much higher levels of NPAs.
SBFC Peer Comparison
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| SBFC Finance Limited | 5,307.02 | 10 | NA | 0.81 | 0.79 | 5.18 | 15.42 |
| Aavas Financiers Ltd | 13,056.5 | 10 | 40.80 | 45.10 | 44.81 | 12.66% | 355.53 |
| Home First Finance Company India Ltd | 5957.01 | 2 | 35.83 | 21.26 | 20.85 | 11.83% | 179.58 |
| Aptus Value Housing Finance India Ltd | 8,402.17 | 2 | 37.44 | 7.58 | 7.53 | 12.69% | 58.68 |
| AU Small Finance Bank Ltd Projects Limited | 69,154.25 | 10 | 35.01 | 18.03 | 17.85 | 15.04% | 119.31 |
| Five Star Business Finance Limited | 12,561.69 | 1 | 34.93 | 16.09 | 15.92 | 12.22% | 127.34 |
SBFC Financial Information
| Particular | As at 31 March 2020 | As at 31 March 2021 | As at 31 March 2022 |
| Revenue (₹ in Million) | 4,446.70 | 5,070.99 | 5,290.52 |
| Equity (₹ in Million) | 10,124.77 | 12,051.08 | 12,871.67 |
| Expenses (₹ in Million) | 3,862.34 | 3,974.68 | 4,440.06 |
| Profit and Loss After Tax (₹ in Million) | 354.95 | 850.10 | 645.21 |
| RoNW (%) | 3.75 | 7.67 | 5.18 |
| Diluted EPS only (₹) | 0.48 | 1.06 | 0.79 |
| NAV per Equity Share (₹) | 13.19 | 14.66 | 15.42 |
| Total Assets (in million) | 42,079.85 | 42,311.90 | 45,150.34 |
| Total Liabilities (in million) | 31,955.08 | 30,260.82 | 32,278.67 |
SBFC IPO – Industry & Market Potential
The future of NBFCs in India is bright. Non-banking financing is in a good situation, with loan returns increasing substantially faster than the cost of borrowing. This is anticipated to continue for at least another two quarters, which is good for the stock. Furthermore, the industry is predicted to increase at an 18.5% CAGR between 2021 and 2026. SBFC has also enjoyed success, with a 39.25% increase in sales in FY23.
SBFC IPO – Type of Offer
SBFC’s IPO combines a fresh issue and an offer for sale (OFS).
Fresh Issue: The business will issue new shares to raise money, to raise INR 750 crore. This fund will help the firm in meeting its future capital requirements.
Offer For Sale (OFS): Existing shareholders, including promoters and early investors, would sell a portion of their stock to raise INR 450 crore.
As a result, the total amount projected to be generated through this IPO is INR 1200 crore.
SBFC IPO Offer Size
The SBFC IPO expects to bring in a total of 1,200 Crore. This comprises a fresh offering of INR 750 Crore and an OFS by the promoters for INR 450 Crore. The proceeds from this IPO will be utilized to cover future capital requirements brought about by the growth of the company’s assets and operations.
SBFC IPO Allotment Structure
SBFC’s IPO allotment structure will be as follows:
How to apply for an SBFC IPO through Alice Blue?
These are the processes that you would generally follow to apply for the SBFC IPO through Alice Blue:
Open a Trading and Demat Account: In the event that you do not already own a Demat and trading account, you will be required to establish one with Alice Blue.
Check for Details Regarding the IPO: After your account has been activated, you will have access to the IPO part of the Alice Blue platform, where you may look up information regarding the SBFC IPO.
Place the Bid: Enter the number of shares that you want to purchase, and then place your offer anywhere within the IPO’s price band.
Send the Application: Make sure that all of your information is correct, and then submit your application.
You may apply for SBFC’s IPO at Alice Blue with only a few clicks!
Check Allotment Status: You can check the allocation status after the allotment procedure to see if you have gotten any shares.
Please remember that share allotment is not guaranteed and is subject to IPO demand.
How to Check SBFC IPO Allotment Status on Alice Blue?
Checking an IPO’s allocation status in Alice Blue is typically simple. Please take the following general steps:
Sign in to your account at Alice Blue: This may be done using the Alice Blue website or their trading app.
Go to the Portfolio section or the IPO section: The layout of Alice Blue’s platform may vary, but normally, you may discover the progress of your IPO application in the ‘Portfolio’ or ‘IPO’ area.
Check the Allotment Status of the IPO: Look for a section labeled ‘IPO Allotment Status’ or anything along those lines. Please check the status of the IPOs you’ve applied for here.
Choose SBFC IPO: If you have applied for many IPOs, there may be a dropdown menu or a list from which you can pick the IPO of your choice. Choose SBFC IPO.
Check the Status: Your application’s status should be displayed here. If the shares have been assigned to you, it will be noted here.
If you have any problems, it is best to contact Alice Blue’s customer service for thorough advice.
Aside from Alice Blue, there are several more ways to monitor the SBFC IPO’s allocation status:
NSE and BSE: You may also monitor the status of your allotment on the websites of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). To check the status, you will need your application number and PAN.
Please keep in mind that the allotment status will be visible only when the allotment procedure is finished, which will be a few days after the IPO window ends.
SBFC Offer Registrar
KFin Technologies Limited is the registrar for the SBFC IPO. They are in charge of ensuring that the IPO allotment and refund processes go successfully.
Contact information for the registrar:
Selenium, Tower-B, Plot 31 & 32, Financial District, Nanakramguda, Serilingampally Hyderabad, Rangareddi 500 032, Telangana, India
Tel: +91 40 6716 2222 / 7961 1000
E-mail: [email protected]
Investor grievance e-mail: [email protected]
Website: www.kfintech.com
SBFC IPO FAQs
What is the Debt of SBFC?
SBFC’s total debt is around ₹3402 crores.
Who is the Owner of SBFC?
SBFC was founded in 2008 by Aseem Dhur. It is currently based in Mumbai.
What is the revenue of SBFC?
The current revenue of SBFC is ₹740.36 crores.
Is SBFC a good company?
SBFC has been performing well in recent years, with profit margins significantly greater than what is often seen in non-banking financing organizations. SBFC has a diverse pan-India presence and a large network. As of March 31, 2023, they have 152 branches in 120 cities in 16 Indian states and two union territories. Their AUM is spread over India as of the same date, with 30.84% in the north, 38.53% in the south, and 30.63% in the west and east combined. The company has also collected 304 crores from anchor investors, indicating that it has a promising future and is now in great demand.
