Non-Banking Finance Company, SBFC Finance, is all set to launch its Initial Public Offering (IPO) aiming to raise Rs 1025 crore.
The IPO subscription is scheduled to commence on August 3, with investors having the opportunity to participate until August 7.
Anchor investors will have access to the IPO a day earlier, on August 2.
The company, incorporated in 2008, aims to utilize the proceeds from the IPO to meet future capital requirements for business and asset growth, as well as to bolster its capital base.
IPO Details and Offer Structure
SBFC Finance’s IPO will include fresh equity shares worth Rs 600 crore and Offer for Sale (OFS) of shares worth Rs 425 crore by the company’s promoters, which include Arpwood Partners Investment Advisors LLP, Arpwood Capital, and AT45 Services LLP.
The company has also set aside shares worth Rs 10.25 crore for its employees in the IPO.
Prior to filing the red herring prospectus, the company raised Rs 150 crore through private placement of equity shares, subsequently reducing the fresh issue size to Rs 600 crore.
SEBI Approval and Previous Attempts
This marks the second time that SBFC Finance has filed draft papers with the market regulator, SEBI, for its IPO.
Initially filed in November 2022 to raise Rs 1,600 crore, the IPO size was later reduced to Rs 1,200 crore in March 2023.
Finally, with SEBI’s approval, the company is now set to proceed with its IPO to raise Rs 1,025 crore.
SBFC Finance – A Systematically Important NBFC
SBFC Finance is classified as a Systemically Important Non-Deposit-Taking Non-Banking Finance Company (NBFC-ND-SI).
Its core customer base includes entrepreneurs, small business owners, self-employed individuals, and working-class individuals.
The company offers Secured MSME Loans and Loan Against Gold services, catering to those who may not have easy access to traditional financial institutions like banks.
With a focus on supporting entrepreneurs’ financial needs and fostering growth, SBFC Finance plays a crucial role in assisting underserved segments of the market.
SBFC Finance’s upcoming IPO presents an opportunity for investors to be a part of the growth journey of this Systemically Important NBFC.
With the funds raised through the IPO, the company aims to expand its capital base and continue providing vital financial services to entrepreneurs and small business owners, bolstering economic development and financial inclusion.
Investors and market enthusiasts are eagerly awaiting the opening of the subscription window on August 3, anticipating the potential growth prospects of this promising offering.