SBFC Finance Limited is a systemically important, non-deposit taking non-banking finance company (“NBFC-ND-SI”) offering Secured MSME Loans and Loans against Gold. The primary customer base of the company includes entrepreneurs, small business owners, self-employed individuals, salaried and working-class individuals.
The company has one of the highest assets under management (“AUM”) growth, at a CAGR of 40% in the period from Fiscal 2019 to Fiscal 2022.
SBFC Finance tends to extend its services to entrepreneurs and small business owners who are underserved by the traditional financial institutions like banks.
As of December 31, 2022, the company has an expansive footprint in 105 cities, spanning 16 Indian states and two union territories, with 137 branches.
SBFC Finance IPO – Details
| IPO Opening Date | 03 August 2023 |
| IPO Closing Date | 07 August 2023 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 17,98,24,562 Shares Worth ₹1025.00 Crore Fresh Issue: 10,52,63,158 Shares Worth ₹600.00 Crore Offer For Sale: 7,45,61,404 Shares Worth ₹425.00 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹54 – ₹57 |
| Market Lot | 260 Shares |
| Min Order | 260 Shares (1 Lot) |
| Employee Discount | ₹2 Per Share |
| Listing At | BSE, NSE |
| Register | Kfin Technologies Limited |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
SBFC Finance IPO – Date Schedule
| IPO Open Date | 03 August 2023 |
| IPO Close Date | 07 August 2023 |
| Basis of Allotment Date | 11 August 2023 |
| Initiation of Refunds | 14 August 2023 |
| Credit of Shares to Demat Account | 14 August 2023 |
| IPO Listing Date | 16 August 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on 07 August , 2023 |
SBFC Finance IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 260 | 14,820 |
| Retail (Max) | 13 | 3380 | 1,92,660 |
| S-HNI (Min) | 14 | 3640 | 2,07,480 |
| S-HNI (Max) | 67 | 17,420 | 9,92,940 |
| B-HNI (Min) | 68 | 17,680 | 10,07,760 |
Competitive Strengths
- Diversified pan-India presence with an extensive network to cater the target customer segment;
- 100% in-house sourcing, leading to superior business outcomes;
- Comprehensive credit assessment, underwriting and risk management framework;
- Extensive on-ground collections infrastructure leading to maintenance of robust asset quality;
- Healthy liability franchise with low cost of funds;
- Consistent financial performance backed by profitable growth; and
- Experienced, cycle-tested and professional management team with good corporate governance backed by marquee investors.
Company Promoters
- SBFC Holdings Pte. Ltd.
- Clermont Financial Pte. Ltd.
- Arpwood Partners Investment Advisors LLP
- Arpwood Capital Private Limited
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2020 | 444.84 | 386.23 | 35.49 | 3,056.37 |
| 31 March 2021 | 511.53 | 397.46 | 85.01 | 2772.55 |
| 31 March 2022 | 530.70 | 444.00 | 64.52 | 2948.81 |
| 31 December 2022 | 531.68 | 388.33 | 107.02 | 3409.47 |
| 31 March 2023 | 740.36 | 538.99 | 149.73 | 3745.83 |
Key Performance Indicator
| KPI | Values |
|---|---|
| P/E | 40.42 |
| Market Cap (₹ Cr.) | 6065.78 |
| ROE | 9.93% |
| Debt/Equity | 2.2 |
| EPS (Rs) | 1.25 |
| RoNW | 7.97% |
Object Of The Issue
- The Company proposes to utilize the Net Proceeds towards augmenting the Company’s capital base to meet their future capital requirements arising out of the growth of the business and assets.
SBFC Finance IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Aavas Financiers Ltd | 28.80 |
| 2 | 2 | Home First Finance Company India | 31.12 |
| 3 | 2 | Aptus Value Housing Finance India Ltd | 24.80 |
| 4 | 10 | AU Small Finance Bank Ltd | 35.01 |
| 5 | 1 | Five Star Business Finance Limited | 32.47 |
SBFC Finance IPO Strengths
- The company has exhibited a robust financial track record in increasing its AUM and keeping its NPA under control.
- SBFC Finance leverages both physical branches and technology for customer sourcing.
- It maintains a low level of AUM per state for efficient distribution of risk.
SBFC Finance IPO Risks
- Banks and NBFCs are exposed to the risk of non-payment of loans and an increase in NPA.
- The quality of the asset portfolio can be impacted by NPA and the business may be adversely affected.
- If the firm fails to recover the full value of the collateral, that might impact its profitability.
SBFC Finance IPO Promoter Holding
| Pre Issue Share Holding | 78.83% |
| Post Issue Share Holding | 64.03% |
SBFC Finance IPO Prospectus
Company Contact Information
| SBFC Finance Limited 103, 1st Floor, C&B Square, Sangam Complex, Andheri Kurla Road, Village Chakala, Andheri (East), Mumbai – 400 059 Phone: 022 6787 5344 Email: complianceofficer@sbfc.com Website: http://www.sbfc.com/ |
SBFC Finance IPO Registrar
| Kfin Technologies Limited Phone: 04067162222, 04079611000 Email: Sbfc.ipo@kfintech.com Website: https://kosmic.kfintech.com/ipostatus/ |
SBFC Finance IPO Lead Manager(s)
| 1. ICICI Securities Limited 2. Axis Capital Limited 3. Kotak Mahindra Capital Company Limited |
SBFC Finance IPO FAQs
| What is SBFC Finance IPO? SBFC Finance IPO is a main-board IPO. The issue is priced at ₹54 to ₹57 per equity share. The IPO is to be listed on BSE & NSE. |
| When SBFC Finance IPO will open? The IPO is to open on 03 August 2023 for QIB, NII, and Retail Investors. |
| What is SBFC Finance IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the SBFC Finance IPO? You can apply SBFC Finance IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the SBFC Finance IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “SBFC Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the SBFC Finance IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “SBFC Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the SBFC Finance IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “SBFC Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the SBFC Finance IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “SBFC Finance”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is SBFC Finance IPO Size? SBFC Finance IPO size is ₹1025 Cr. |
| What is SBFC Finance IPO Price Band? SBFC Finance IPO Price Band is ₹54 to ₹57. |
| What is SBFC Finance IPO Minimum and Maximum Lot Size? The minimum bid is 260 Shares with ₹14,820 amount while the maximum bid is 3380 shares with ₹1,92,660. |
| What is the SBFC Finance IPO Allotment Date? SBFC Finance IPO allotment date is 11 August 2023. |
| What is the SBFC Finance IPO Listing Date? SBFC Finance IPO listing date is 16 August 2023. The IPO is to list on BSE and NSE. |
