SBFC Finance Limited IPO : Company Information

SBFC Finance Limited IPO is set to launch on 26 July, 2023. The company initiated its business operations in the year 2008. SBFC Finance is an NBFC which is a systemically important and non deposit taking entity. The customers of the company are entrepreneurs, self-employed people, small businesses, salaried people, etc. Its services include Secured form of MSME loans to the customers against gold. The company currently functions through 105 cities, 2 union territories and 16 states. It has a total of 137 branches in India.

SBFC Finance Limited IPO DETAILS

SBFC Finance Limited IPO is set to launch on 3 August, 2023. The subscription timeline extends till 7 August, 2023. The size for the IPO is 1025 Crore Rs. Shares issued through fresh issue mode are worth 600 Crore Rs. Shares issued through offer for sale mode are worth Rs 425 Crore. The lot size is 260 shares and the price is 54 to 57 Rs per share. The company is going to get listed at both NSE and BSE. The face value per share is Rs.10 and this is a Book Built issue. The registrar for the company is KFin Technologies Limited.

Tabular Description of SBFC Finance Limited IPO

IPO OPENING DATE	3 August, 2023
CLOSING DATE FOR IPO	7 August, 2023
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	54 Rs. to 57 Rs. per share
LOT SIZE	260 shares
MINIMUM ORDER QUANTITY	260 shares
ISSUE SIZE	1025 Crore Rs.
OFFER FOR SALE	425 Crore Rs.
FRESH ISSUE	600 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	16 August, 2023

SBFC Finance Limited IPO : IMPORTANT DATES

IPO OPENING DATE	3 August, 2023
CLOSING DATE FOR IPO	7 August, 2023
IPO ALLOTMENT DATE	10 August, 2023
REFUNDS	11 August, 2023
DEMAT A/C CREDITED ON	14 August, 2023
IPO LISTING DATE	16 August, 2023

SBFC Finance Limited IPO begins for subscription from 3 August, 2023. The IPO subscription would continue till 7 August, 2023. The allotment status for the shareholders who applied would come on 10 August, 2023. The refunds for the ones who did not get allotment would be initiated on 11 August, 2023. The DEMAT accounts of shareholders would be credited on 14 August, 2023. The listing of the company would be completed on 16 August, 2023.

SBFC Finance Limited IPO : Lead Managers

The lead managers are :

• Axis Capital Limited
• ICICI Securities Limited
• Kotak Mahindra Capital Company Limited

The minimum lot size for the company is decided at 260 shares. This holding accounts to 14820 Rs.. The maximum lot size is decided at 3380 shares. This amounts to 192660 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	260 shares	14280 Rs.
Maximum	3380 shares	192660 Rs.

OBJECTIVES FOR THE IPO

• IPO proceeds would be used for general corporate purposes.
• The company will use the IPO money for further working capital requirements.

COMPANY FINANCIALS

Particularly (in Crore Rs.)	2020-21	2021-22	2022-23
ASSETS	4231	4515	5746
Revenue	511	531	740
PAT	85	64	150

SBFC Finance Limited had an asset base of 4231 Crore Rs in 2021. This went on to 4515 Crore Rs in 2022 and 5746 Crore Rs in 2023. The revenue of the company has also been increasing in accordance to the rise in asset base. The revenue of the firm was 511 Crore Rs in 2021 which increased to 531 Crore Rs in 2022 and went on to 740 Crore Rs in 2023. The profit of the firm has not been consistent. The profit in the year 2021 was 85 Crore Rs. However in the year 2022 the profit came down to 64 Crore Rs. In 2023 the profit figures bounced back again. In comparison to the 2022 results the profit increased by more than 1.4 times to 150 Crore Rs. 

PROS

• The customers of the company are entrepreneurs, self-employed people, small businesses, salaried people, etc. Its services include Secured form of MSME loans to the customers against gold.
• The company currently functions through 105 cities, 2 union territories and 16 states. It has a total of 137 branches in India.

CONS

• The company works in a highly competitive segment.

SBFC Finance Limited IPO Application Process with Zerodha

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform. Clicking the IPO section present in the ORDER tab.
2. Click the SBFC Finance Limited IPO button and press the BID button.
3. Entering the details asked for like UPI ID, Quantity and price.
4. Submit the application form for the IPO.
5. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.