SBFC Finance, a non-banking lender, is set to launch its initial public offering (IPO) on August 3, with the closing date on August 7. The company aims to raise ₹1,025 crore through the IPO, which includes ₹600 crore from fresh share issuance and ₹425 crore from an offer for sale, according to the Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI).
Earlier in March, the company had refiled its papers with the market regulator, and the IPO size was reduced from ₹1,600 crore to ₹1,200 crore.
An IPO is the first time a company’s promoters seek to raise additional funds by offering shares of the company to the public.
Vaibhav Kaushik, a Research Analyst at GCL Broking, mentioned that the IPO’s fresh issue component of ₹600 crores is a positive aspect. Additionally, the company’s increasing profits and its presence in major cities make it an attractive investment. He recommends subscribing to the IPO, with a possibility of a target (TGT) of 25% or higher listing gain.
Dr. Ravi Singh, Vice President and Head of Research at Share India, considers SBFC, a non-banking finance company backed by Singapore-based private equity firm Clermont Group, a promising option for listing gains due to its higher price-to-earnings (PE) ratio. He suggests investors subscribe to the IPO for potential immediate gains, and the price band for the offer will be disclosed by the company soon.
According to topsharebrokers.com, the current grey market premium (GMP) of the IPO until 3 pm is ₹38.
ICICI Securities, Axis Capital, and Kotak Investment Banking are the book running lead managers for the IPO, as per the RHP filed with SEBI. A lead manager plays a crucial role in handling the company’s operations, management, business plans, and legal aspects during the pre-issue process.
SBFC Finance specializes in providing loans to entrepreneurs, self-employed individuals, and small business owners.
 on August 3, with the closing date on August 7){kind=link}