Akash Jha
The initial public offering (IPO) of SBFC Finance, a non-banking finance company, was oversubscribed 70,11 times by the close of bidding on the final day, August 7.
According to subscription data made available by the exchanges, investors bid for 936,03 billion shares against an offer size of 13,35 billion.
Retail investors purchased 10.89 times their allotted quota, whereas the portion reserved for employees, who will receive shares worth Rs 10.25 crore, was subscribed 5.78 times.
High-net-worth individuals (HNIs) outbid their reserved portion by 49.08 times, while qualified institutional purchasers (QIBs) outbid by 192.9 times. Half of the issue is reserved for qualified institutional buyers, 15 percent for high-net-worth investors, and the remaining 35 percent for retail investors.
The Clermont Group and Arpwood Group-backed NBFC hope to raise Rs 1,025 crore through the IPO, which includes a fresh issue of shares worth Rs 600 crore and the sale of shares worth Rs 425 crore by three Arpwood Group-owned companies.
The price range for the offering, which began on August 3, has been set between Rs 54 and Rs 57 per share.
Anchor investors, including Abu Dhabi Investment Authority, Steadview Capital Master Fund, Amansa Holdings, Carmignac Portfolio, Think India Opportunities Master Fund LP, SBI Mutual Fund, ICICI Prudential, and Tata Mutual Fund, have provided Rs 304.42 crore to SBFC Finance.
The proceeds from the offering will be used to increase SBFC’s capital base as the company expands, according to the company.
By August 10, the non-banking finance company will finalise the basis of allotment, and by August 14, the shares will be transmitted to the demat accounts of qualified investors.
By August 11, refunds will be credited to the accounts of unsuccessful investors. The stock will begin trading on August 16.
Anonymous analysts reported that on the grey market, SBFC Finance shares were available at a 70 percent premium to the upper price band.
The grey market is an unofficial platform for trading IPO shares, and its price is closely monitored for estimation purposes.
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