SBFC Finance may file DRHP for IPO next week

28 Oct 2022 , 10:45 AM

The Mumbai-based non-bank lender SBFC Finance is prepared to submit an Rs1,600 crore initial public offering (IPO) as early as next week. The IPO would raise expansion capital and provide partial exits for investors Clermont Group of Singapore and Arpwood Partners of India.

According to news reports, “The IPO will likely be filed next week, and the offer will open later this fiscal after complying with all regulatory procedures.”

The issue’s bankers are Kotak Mahindra Capital Co., ICICI Securities, and Axis Capital.

Aseem Dhru, a former executive at HDFC Bank, founded the NBFC SBFC, which focuses on micro- and small-scale businesses. Neeraj Swaroop, a former executive of Standard Chartered, serves as board chairman. The majority of its loans have real estate used as collateral. Its total loan book at the end of September was around Rs4,000 crore, with typical loan amounts ranging from 10 to 30 lakh rupees. By the end of FY23, it plans to raise its loan book to Rs5,000 crore.

There are 135 SBFC branches nationwide. The business concluded the quarter in June with a net profit of Rs32 crore. At the end of June, it had a net NPA ratio of 1.57%. Clermont and Arpwood will have the opportunity to sell some of their firm stakes following the IPO. The company is 67% owned by Clermont, 20% by Arpwood Group, and the remaining 33% by management and staff.

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