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Shares of SBFC Finance will be listed on the bourses on Wednesday. The company has fixed the issue price at ₹57, at the upper end of the price band ₹54-57. The ₹1,025-crore initial public offering of SBFC Finance saw an overwhelming response from all categories of investors and was subscribed over 70 times.
The public issue comprised a fresh issuance of shares worth ₹600 crore and an offer for sale (OFS) of ₹425 crore by promoters. Promoter entities Arpwood Partners Investment Advisors LLP will be selling shares worth ₹306.25 crore; Arpwood Capital (₹75.16 crore), and Eight45 Services LLP (₹43.59 crore) via OFS.
The category for Qualified Institutional Buyers (QIBs) was subscribed a whopping 192.90 times while non-institutional investors quota received 49.09 times subscription. The portion meant for Retail Individual Investors (RIIs) got subscribed 10.99 times and employee by 5.87 times.
As part of IPO process, the company has mopped ₹304 crore by finalising allocation of 5,34,07,893 equity shares to Anchor Investors at ₹57 a share.
Also read: SBFC Finance IPO: Promising deal to consider
Among the anchor investors included both domestic and foreign investors. Among them are Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, Neuberger Berman among others. The anchor list also saw existing investors ICICI MF, SBI MF, HDFC MF, Amansa, Malabar and Steadview Capital participating in the offer.
SBFC Finance will utilise fresh issue proceeds, excluding IPO expenses, mainly for augmenting its capital base to meet future capital requirements arising out of the growth of the business and assets, while the offer for sale money will go to selling shareholders.
Delhi-NCR-based SBFC Finance Ltd, is a systemically important, non-deposit taking non-banking finance company (NBFC-ND-SI) offering secured MSME loans and loans against gold.
ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book running lead manager and KFin Technologies Limited is the Registrar to the offer. The Equity Shares are proposed to be listed on BSE and NSE.
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