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SBFC Finance : The Success Story of SBFC Finance’s IPO, A Deep Dive into Allotment and Future Prospects

Investors and finance enthusiasts have been eagerly anticipating the allotment results of the initial public offer (IPO) from SBFC Finance, a prominent non-banking finance company. With the allotment expected to be finalized today, let’s delve into the details of this remarkable IPO and what it means for the market.

A Game-Changing IPO

The highly anticipated IPO of SBFC Finance, with a total issue size of ₹1,025 crore, marked a significant event in the financial landscape. Opening for subscription on August 3 and closing on August 7, this IPO caught the attention of investors and analysts alike due to its unique offerings.

The Price Band and Response

The IPO presented shares in a price band of ₹54-57 per share, making it an attractive proposition for a wide range of investors. The response to this offering was nothing short of extraordinary, with a subscription rate of 74.06 times in just three days. This massive oversubscription was a testament to the market’s confidence in SBFC Finance’s prospects.

The Breakdown: IPO Composition

The IPO consisted of two components: a fresh issuance of shares worth ₹600 crore and an offer for sale (OFS) of shares worth ₹425 crore by the company’s promoters. This combination aimed to infuse fresh capital into the company while also providing an exit opportunity for existing stakeholders.

Investor Appetite: Categories and Subscription Rates

The subscription rate varied across different investor categories. Qualified institutional bidders showed immense interest, oversubscribing their quota by a staggering 203.61 times. Non-institutional investors also displayed strong interest, with a subscription rate of 51.82 times. Even the retail investors’ category experienced a subscription rate of 11.60 times, showcasing widespread retail participation.

The Road Ahead: Listing and Allotment

The exciting journey of SBFC Finance doesn’t end with a successful subscription. The company is set to be listed on both the BSE and NSE on August 16. Investors who participated in the IPO are eagerly awaiting their allotment status. Here’s how they can check it:

On BSE

  1. Visit the BSE website.
  2. Select ‘Equity’ and then choose the issue name (SBFC Finance) from the dropdown.
  3. Enter your application number and PAN card number.
  4. Click on the “Search” button.

On KFin Technologies’ Website

  1. Visit the KFin Technologies website.
  2. Click on ‘Company Selection’ and select the IPO name (SBFC Finance).
  3. Enter your PAN, application number, DP / Client ID, or account number / IFSC.
  4. Click on ‘Search’.

Remember, the status will only appear after allotment if the details are entered correctly. In case of non-allotment, the blocked amount will be promptly refunded. Refunds are set to initiate on August 11, while the allotted shares will be credited to Demat accounts by August 14.

The Grey Market Buzz

Prior to the IPO listing, SBFC Finance’s shares in the grey market were trading at a significant premium of ₹40. While this premium provides a glimpse into the market’s perception, it’s crucial to note that grey market trends can be volatile and don’t always reflect the stock’s actual performance.

Unveiling SBFC Finance: The Company’s Essence

Established in 2008, SBFC Finance has emerged as a major player in the non-banking finance sector. The company’s focus on providing secured MSME loans and loans against gold has earned it a strong reputation. With an extensive pan-India network spanning 157 branches in 105 cities across 16 states and two union territories, SBFC Finance has successfully reached a diverse range of customers.

Expert Insights and Future Outlook

Numerous brokerage firms have recommended subscribing to the IPO, citing SBFC Finance’s robust business model, strong return ratios, and widespread network as key strengths. However, a few cautious voices have highlighted potential risks, including higher valuations and possible pressure on margins.

Conclusion

The SBFC Finance IPO stands as a testament to investor confidence in the company’s vision and potential. With an impressive subscription rate, the company is set to enter the market with a bang. As the allotment results are unveiled, investors eagerly await their share of this promising venture.

For more updates follow Allinfohere

FAQs

When will SBFC Finance be listed on the stock exchanges?

The company is expected to be listed on both BSE and NSE on August 16.

How can I check my allotment status?

You can check your allotment status on the BSE website or the KFin Technologies’ website using your application and PAN details.

What happens if I’m not allotted any shares?

In case of non-allotment, the blocked amount will be refunded to your bank account.

When will refunds be initiated for non-allottees?

Refunds for non-allottees are set to begin on August 11.

What does the grey market premium indicate?

The grey market premium reflects the perceived demand for the shares in the unlisted market but may not accurately predict post-listing performance.

Ankit Singh

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