SBFC Finance marked a robust entry into the secondary market on Dalal Street on August 16, following a highly successful Rs 1,025-crore IPO that garnered over 70 times subscription.
The shares of SBFC Finance commenced trading energetically in the secondary market on Wednesday, as Dalal Street resumed trading activities after a mid-week hiatus for Independence Day. The SBFC Finance stock debuted on the listed platform at Rs 81.99 per share on the BSE, exhibiting a substantial premium of Rs 24.99 or 43.8% compared to the upper limit of the IPO price range. Simultaneously, on the NSE, the stock opened at Rs 82 per share, commanding a premium of Rs 25 or 43.9%.
Mumbai-based non-banking financial firm (NBFC) SBFC Finance concluded its IPO last week, featuring a fresh issuance worth Rs 600 crore and a Rs 425 crore offer for sale (OFS). The IPO witnessed an overwhelming subscription rate of 70 times the available equity, with bids pouring in for 936.8 crore shares against the offering of 13.4 crore shares. This enthusiastic response was largely driven by active participation from institutional investors, as indicated by preliminary exchange data.
Zee Business Managing Editor Anil Singhvi, prior to the IPO launch, had recommended considering the issue for the potential of substantial listing gains. He highlighted several positive aspects of the company, including competent promoters, a business model with a focus on MSMEs, a commendable financial track record, a robust anchor book, and reasonable valuations. However, he also noted some challenges such as the declining trend in net interest margin (NIM) and higher non-performing asset (NPA) levels compared to industry standards.
During the IPO subscription period, which spanned from August 3 to August 7, interested investors were permitted to bid for SBFC Finance shares within a price range of Rs 54 to Rs 57 per share, in multiples of 260 shares, translating to Rs 14,040 to Rs 14,820 per lot.
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