SBFC Finance raises Rs 304.42 crore ahead IPO through anchor book

3 Aug 2023 , 09:30 AM

The initial public offer (IPO) of SBFC Finance is opening today on August 03 and the company has raised Rs 304.42 crore from anchor investors on August 04 ahead the opening.

The company has informed the exchanges that it has successfully allocated 5.34 crore equity shares to anchor investors at a price of Rs 57 per share.

Prominent investors who participated in the anchor book include Abu Dhabi Investment Authority, Amansa Holdings, Neuberger Berman Emerging Markets Equity Fund, Ashoka India Opportunities Fund, Steadview Capital Master Fund, Carmignac Portfolio, Think India Opportunities Master Fund LP, and Natixis International Fund.

Furthermore, notable names such as HDFC Mutual Fund, SBI Mutual Fund, ICICI Prudential, Kotak Mahindra Trustee, Axis Mutual Fund, Aditya Birla Sun Life Trustee, Tata Mutual Fund, Sundaram Mutual Fund, Tata AIA Life, Motilal Oswal Mutual Fund, Bajaj Allianz Life Insurance, Max Life Insurance, and DSP India Fund have also participated in the company’s anchor book investment.

SBFC Finance, supported by private equity firm Clermont Group and investment bank Arpwood Group, has outlined its intention to raise Rs 1,025 crore through a public issue. This fundraising endeavor involves a fresh issuance of shares valued at Rs 600 crore, coupled with an offer for sale (OFS) worth Rs 425 crore by the promoter, Arpwood Group.

The SBFC Finance initial public offering (IPO) consists of a fresh issuance of equity shares amounting to Rs 600 crore and an offer for sale (OFS) worth Rs 425 crore, as detailed in the Red Herring Prospectus (RHP). The total size of the SBFC Finance IPO now stands at Rs 1,025 crore. Interested investors can place bids for a minimum of 260 equity shares and in multiples of 260 equity shares thereafter.

The offering price range for this public issue has been established at Rs 54 to Rs 57 per share.

As outlined in the Red Herring Prospectus (RHP), SBFC Finance plans to utilize the net proceeds from the IPO to address future capital needs arising from the envisaged expansion of their company’s operations and assets.