Non-banking lender SBFC Finance’s initial public offering (IPO) will open on August 3 and close on August 7. The company is planning to raise ₹1,025 crore through the IPO, comprising fresh issuance of shares worth ₹600 crore and offer for sale worth ₹425 crore, as per the Red Herring Prospectus (RHP) filed before Securities and Exchange Board of India (SEBI).
In March the company had refiled its papers with the market regulator. The IPO size was reduced from ₹1,600 crore to ₹1,200 crore.
“This IPO has a fresh issue of 600 crores out of a total of 1025 crores. This is a positive development. Furthermore, profits are steadily increasing, and the company is geographically accessible in major cities. NPA are also in check. All of these factors are considered. Must subscribe to IPO. Our TGT of 25% or higher listing gain is possible”, Vaibhav Kaushik, Research Analyst, GCL Broking, said.
“SBFC, a Singapore-based private equity firm Clermont Group-backed non-banking finance company, with a higher PE can be a good bet for the listing gains. Investors may subscribe to this ipo for immediate gains. The price band for the offer will be announced by the company in the coming days”, Dr. Ravi Singh, Vice President and Head of Research, Share India, said.
According to topsharebrokers.com, the current grey market premium (GMP) of the IPO till 3 pm is ₹38.
ICICI Securities, Axis Capital and Kotak Investment Banking are the book running lead managers of the company, as per the RHP filed before SEBI.
In simple words, a lead manager takes up the company’s operations/management/business plans/legal aspects during the pre-issue process. The company specialises in providing loans to entrepreneurs, self-employed people and small business owners.
(With PTI inputs)
