The allotment for the initial public offer (IPO) of non-banking finance company SBFC Finance is likely to be finalised today. Investors can check their allotment status on the issue's registrar KFin Technologies' website as well as on BSE.
The ₹1,025-crore issue of SBFC Finance opened for subscription on Thursday, August 3 and closed on August 7. The price band for the offer was set in the range of ₹54-57 per share. This was the first IPO to be launched in the month of August 2023.
The issue comprises of a fresh issuance of shares worth ₹600 crore and an offer for sale (OFS) of shares worth ₹425 crore by promoters.
The IPO received a solid response from the investors and was subscribed to 74.06 times in the 3 days of bidding. The portion for qualified institutional bidders was booked 203.61 times, while the non-institutional investors' category was subscribed to 51.82 times. The quota reserved for retail investors was subscribed to 11.60 times, while the employee portion fetched bids 6.21 times the offer.
The firm is likely to be listed on BSE and NSE on Wednesday, August 16.
2) Select ‘Equity’ and then from the dropdown, select the issue name (SBFC Finance).
3) Enter your application number and PAN card number.
4) Click on the "Search" button.
In a similar way, you can also check on its registrar's website
1) Go to the website of Kfin Technologies.
2) Click on ‘Company Selection’ and then select the IPO name (SBFC Finance).
3) Now, enter your PAN, application number, DP / Client ID or account number / IFSC.
4) Click on ‘Search’.
The status will only appear after allotment if the details are entered correctly. In the case of non-allotment, the blocked amount will be refunded to your bank account. The company will initiate refunds on Friday, August 11, while the shares will be credited to the Demat account of allottees on Monday, August 14.
GMP: Ahead of the IPO, the company's shares in the grey market are trading at a healthy premium of ₹40, indicating a strong response for the issue.
However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.
The company will utilise fresh issue proceeds, excluding IPO expenses, mainly for augmenting its capital base to meet future capital requirements arising out of the growth of the business and assets, while the offer for sale money will go to selling shareholders.
Incorporated in 2008, SBFC Finance is a non-banking finance company that provides secured MSME loans and loans against gold primarily to entrepreneurs, small business owners, self-employed individuals, and salaried and working-class individuals. The company has an extensive pan-India network with over 157 branches in 105 cities in 16 states and two union territories.
Most brokerage firms suggested subscribing to the issue of its pan India network, strong return ratios, robust business model and lower cost of funds. However, some have flagged risks of higher valuations and probable pressure on margins as the key risks for the company.
