SBFC Finance IPO to open for subscription on August 3. Check latest GMP

SBFC Finance IPO: SBFC Finance provides loans to entrepreneurs, self-employed people and small business owners.

Updated on: Aug 12, 2023, 18:25:03 IST

By HT News Desk

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Non-banking lender SBFC Finance's initial public offering (IPO) will open on August 3 and close on August 7. The company is planning to raise ₹1,025 crore through the IPO, comprising fresh issuance of shares worth ₹600 crore and offer for sale worth ₹425 crore, as per the Red Herring Prospectus (RHP) filed before Securities and Exchange Board of India (SEBI).

In March the company had refiled its papers with the market regulator. The IPO size was reduced from ₹1,600 crore to ₹1,200 crore.

IPO stands for Initial Public Offering and it is when the promoters of the company in question for the first time want to raise additional funds by offering shares of the company.

“This IPO has a fresh issue of 600 crores out of a total of 1025 crores. This is a positive development. Furthermore, profits are steadily increasing, and the company is geographically accessible in major cities. NPA are also in check. All of these factors are considered. Must subscribe to IPO. Our TGT of 25% or higher listing gain is possible”, Vaibhav Kaushik, Research Analyst, GCL Broking, said.

“SBFC, a Singapore-based private equity firm Clermont Group-backed non-banking finance company, with a higher PE can be a good bet for the listing gains. Investors may subscribe to this ipo for immediate gains. The price band for the offer will be announced by the company in the coming days”, Dr. Ravi Singh, Vice President and Head of Research, Share India, said.

According to topsharebrokers.com, the current grey market premium (GMP) of the IPO till 3 pm is ₹38.

ICICI Securities, Axis Capital and Kotak Investment Banking are the book running lead managers of the company, as per the RHP filed before SEBI.

In simple words, a lead manager takes up the company's operations/management/business plans/legal aspects during the pre-issue process. The company specialises in providing loans to entrepreneurs, self-employed people and small business owners.

(With PTI inputs)

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Hindustan Times. We advise investors to check with certified experts before taking any investment decisions.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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