SBFC Finance Limited's Shares Make Grand Debut with 43% Premium

16 Aug 2023 , 09:53 AM

SBFC Finance Limited’s shares have made an impressive debut on the stock market, opening with a remarkable 43% premium. The shares commenced trading at Rs 82 on NSE, reflecting a premium of 43.86% over the issue price of Rs 57. On BSE, the shares started at Rs 81.99, with a premium of 43.84%.

The successful IPO, valued at Rs 1,025 crore, garnered tremendous interest, resulting in a subscription rate of 70.16 times during August 3-7. Qualified institutional buyers (QIBs) subscribed 192.89 times their allocated quota, while high net-worth individuals subscribed 49.09 times. Retail investors subscribed 10.99 times, and employees subscribed 5.87 times the designated portion.

As a professionally managed non-banking financial company (NBFC), SBFC Finance primarily concentrates on the MSME loans segment, which contributes over 80% to its total revenue, and gold loans, constituting 17% of the revenue. The company achieved significant asset under management growth at a compounded annual growth rate (CAGR) of 44% from FY19 to FY23, coupled with substantial disbursement growth at a CAGR of 40% during the same period.

Operating across 120 cities with 152 branches in India, the company specializes in loans with ticket sizes ranging from Rs 5 lakh to 30 lakh. This loan category contributed over 87% to its total assets under management in FY23.