Akash Jha
SBFC Finance, a SME-focused non-banking finance company, will finalise the premise of allotment for its initial public offering (IPO) shares by the end of the month of August. In lieu of visiting a stock broker’s office, investors can check the allotment status by navigating to the BSE website or the IPO registrar’s portal and completing a few simple steps.
On the BSE website:
a) Select issue type ‘equity’ and issue name ‘SBFC Finance Limited’
b) Enter either ‘Application Number’ or ‘PAN Number’
c) Check box (I am not a robot), and click on ‘Search’ button
In case of IPO registrar’s portal:
a) Select IPO Name ‘SBFC Finance Limited’
b) Select and accordingly enter either ‘Application Number’, or ‘Demat Account’ or ‘PAN Number’
c) Enter ‘Captcha’ and finally click on ‘Submit’ button
Eligible investors will have their equity shares transferred to their demat accounts after the basis of allotment is finalised on August 14, and failed investors will have their refunds refunded to their bank accounts by August 11.
SBFC Finance shares will be listed on the BSE and NSE on August 16.
Under cover of anonymity, experts claimed, “We have seen strong demand for its shares in the grey market as it traded with 70% premium over the upper price band.”
Reasonable valuations, a professional management team, strong finances, and rising asset quality in the face of rigorous credit quality checks are just some of the factors that analysts say contribute to the grey market premium’s overall health.
Grey market premium may also be supported by the positive reaction to the initial public offering (IPO) of private equity firm Clermont Group and SBFC Finance, which was sponsored by investment bank Arpwood Group.
Qualified institutional buyers (QIBs) provided the most support for the sale, bidding 192.9 times its permitted quota during the Rs 1,025-crore public issue from August 3-7, for a total of a 70.16 times subscription. Retail investors booked their allotment 10.99 times, high net worth individuals 49.09 times, and employees 5.87 times.
The offer, with a price range of Rs 54-57 per share, included a new issuance of Rs 600 crore, the majority of which would be used to increase the company’s capital base in order to meet the financial needs that will inevitably arise from the expansion of the business and its assets.
The selling shareholder, Arpwood Group, will receive Rs 425 crore from the issue’s offer for sale.
SBFC has one of the greatest AUM growth rates among MSME-focused NBFCs in India, at a CAGR of 44% between FY19-FY23, with substantial disbursement growth, at a CAGR of 40% during the same period, supported by its widespread presence in 120 cities through its 152 branches.
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