SBFC FINANCE LIMITED - IPO DETAILS
IPO Date |
Aug 3, 2023, to Aug 7, 2023 |
Price Band |
₹54 to ₹57 per share |
Lot Size |
260 Shares |
Issue Size |
₹1,025.00 Cr |
Allotment Date |
10 August 2023 |
Listing Date |
16 August 2023 |
Company Overview
Established in 2008, SBFC Finance Limited operates as a systemically important Non-Banking Finance Company (NBFC-ND-SI) that does not take deposits. Its main clientele consists of entrepreneurs, small business owners, self-employed individuals, and salaried and working-class individuals.
SBFC Finance Limited extends its services in the form of Secured MSME Loans and Loans against Gold, with a particular focus on entrepreneurs and small business owners who have been underserved or unserved by conventional financial institutions like banks. The company takes various factors into account when offering financial assistance through loans, aiming to support entrepreneurs in meeting their financial requirements and fostering their growth.
As of December 31, 2022, SBFC Finance Limited boasts a well-diversified presence across India, with an extensive network. The company has successfully established its footprints in more than 105 cities, covering 16 Indian states and two union territories. Presently, they operate through a total of 137 branches to serve their customers effectively.
Objective of the IPO
Here are a few quick reasons why SBFC Finance going public:
1. To meet boost capital base that are anticipated to result from the expansion of their company's operations and assets.
2. Other general corporate purpose.
Company Financials
Period Ended |
Total Assets |
Total Revenue |
Profit After Tax |
Net Worth |
Total Borrowing |
31-Mar-21 |
4,231.19 |
511.53 |
85.01 |
944.72 |
2,772.55 |
31-Mar-22 |
4,515.03 |
530.70 |
64.52 |
1,026.78 |
2,948.82 |
31-Mar-23 |
5,746.44 |
740.36 |
149.74 |
1,466.88 |
3,745.83 |
Key Performance Indicator
P/E (x) |
40.42 |
Market Cap (₹ Cr.) |
6065.78 |
ROCE |
9.93% |
Pros
SBFC Finance has a PAN India network.
The company relies less on direct selling agents or connectors because the majority of its loan portfolio is created internally.
The business maintains a sound financial position with a low cost of financing thanks to its strong liability franchise.
It has stable financial performance that is underpinned by lucrative, sustainable growth.
Cons
Any borrower default might have a severe effect on the company.
Net interest income and net interest margin may be impacted by interest rate risk and volatility.
A bad credit rating may have an effect on the entire company.
How to Apply for this IPO
1. Go to https://ipo.adityatrading.in/
2. Enter your Client ID
3. Enter the OTP received in your registered mobile number.
4. Choose the IPO and click on apply button.
5. Enter the UPI ID, Quantity, and Cut off the price.
6. Click on submit button
7. Confirm the mandate request received on your phone by entering the UPI Pin.
You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS
DISCLAIMER |
This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.