SBFC Finance said in an exchange filing on August 2 that it has raised ₹304.4 crore from anchor investors, a day ahead of its IPO subscription opening for bidding. SBFC Finance's initial public offering (IPO) will open for subscription on Thursday, August 3 and close on Monday, August 7. The company had fixed the price band at ₹54 to ₹57 per equity share for the proposed initial public offer.
The anchor investor list includes Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, Neuberger Berman among others. The anchor list also saw existing investors ICICI MF, SBI MF, HDFC MF, Amansa, Malabar and Steadview Capital participating in the offer.
| Are you a Tax Lawyer in USA? 👉Transform Your Brand: Click for Metamorphosis👈 |
Out of the total allocation of 5,34,07,893 equity shares to the anchor investors, 2,23,08,260 equity shares were allocated to 10 domestic mutual funds through a total of 18 schemes amounting to ₹127.15 crore i.e. 42 per cent of the total anchor book size.
SBFC Finance IPO comprises of fresh issuance of equity shares worth ₹600 crore and an offer for sale (OFS) of ₹425 crore, according to the Red Herring Prospectus (RHP). The total offer size of SBFC Finance IPO now is ₹1,025 crore. Bids can be made for a minimum of 260 equity shares and in multiples of 260 equity shares thereafter.
The offer is being made through the book building process, wherein not more than 50 per cent of the offer will be available for allocation to qualified institutional buyers, not less than 15 per cent of the offer shall be available for allocation to non-institutional investors and not less than 35 per cent of the offer shall be available for allocation to retail individual investors.
ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book running lead managers and KFin Technologies Limited is the registrar for the issue.
According to the RHP, SBFC Finance intends to use the net proceeds to meet future capital requirements that are anticipated to result from the expansion of their company's operations and assets.
SBFC Finance IPO's basis of allotment of shares will be finalised on Thursday, August 10 and the company will initiate refunds on Friday, August 11, while the shares will be credited to the demat account of allottees on Monday, 14 August. SBFC Finance IPO shares are likely to be listed on BSE and NSE on Wednesday, August 16.
Domestic brokerage firm Geojit Financial Services has assigned a ‘subscribe' rating on SBFC Finance IPO.
‘’SBFC’s portfolio quality metrics are improving, as their respective Gross NPA ratios for FY21, FY22, and FY23 were 3.16 per cent, 2.74 per cent, and 2.43 per cent, and their respective Net NPA ratios were 1.95 per cent, 1.63 per cent, and 1.41 per cent,'' said Geojit Financial Services.
‘’At the upper price band of Rs.57, SBFC is available at a P/B of 2.6x (FY23), lower than industry peers' valuations. Considering the lower valuation, consistent improvement in asset quality, and decent business performance, we assign a “subscribe" rating for the issue on a short-to medium-term basis,'' added the brokerage. Source
| Are you a Tax Lawyer in USA? 👉Transform Your Brand: Click for Metamorphosis👈 |
