Key Points of SBFC Trims IPO Size & Resubmits Papers to SEBI:
- Non-banking lender SBFC has refiled IPO papers with SEBI, reducing the size of the issue from Rs 1,600 crore to Rs 1,200 crore.
- The initial share sale will include a fresh issuance of equity shares worth Rs 750 crore and an Offer for Sale (OFS) of Rs 450 crore.
- The OFS will include equity worth Rs 207 crore offloaded by selling shareholders including Arpwood Partners Investment Advisors, Arpwood Capital, Eight45 Services, and SBFC Holdings Pte Ltd.
- The offer will be available to Qualified Institutional Buyers (QIBs) (50%), Non-Institutional Bidders (15%), and retail investors (not less than 35%). Eligible employees will have a reservation for subscription.
- The company may consider issuing equity shares on a private placement basis of up to Rs 150 crore. If a Pre-IPO placement is completed, the fresh issue size will be further reduced.
- The proceeds from the fresh issuance worth Rs 750 crore will be used to bolster SBFC’s capital base to meet future capital requirements.
- SBFC focuses on lending to entrepreneurs, small business owners, self-employed individuals, and salaried individuals. It has reported revenue of Rs 525 crore and a profit of Rs 107 crore for the nine-months ending December 2022.
Details of SBFC Trims IPO Size & Resubmits Papers to SEBI:
SBFC Refiles IPO Papers with SEBI, Reduces Issue Size to Rs 1,200 Crore
Non-banking lender SBFC has refiled IPO papers with the Securities and Exchange Board of India (SEBI), reducing the size of the issue from Rs 1,600 crore to Rs 1,200 crore. The initial share sale will include a fresh issuance of equity shares worth Rs 750 crore and an Offer for Sale (OFS) of Rs 450 crore. SBFC had filed preliminary IPO papers with SEBI in November last year.
The OFS will include equity worth Rs 207 crore offloaded by selling shareholders including Arpwood Partners Investment Advisors, Arpwood Capital, Eight45 Services, and SBFC Holdings Pte Ltd. The offer will be available to Qualified Institutional Buyers (QIBs) (50%), Non-Institutional Bidders (15%), and retail investors (not less than 35%). Eligible employees will have a reservation for subscription.
The company has indicated that it may consider issuing equity shares on a private placement basis of up to Rs 150 crore. If a Pre-IPO placement is completed, the fresh issue size will be further reduced.
The proceeds from the fresh issuance worth Rs 750 crore will be used to bolster SBFC’s capital base to meet future capital requirements. SBFC focuses on lending to entrepreneurs, small business owners, self-employed individuals, and salaried individuals.
For the nine-months ending December 2022, the company reported revenue of Rs 525 crore and a profit of Rs 107 crore. SBFC Finance has a 137-branch footprint in 105 cities and focuses on disbursing loans in the Rs 5 lakh-Rs 30 lakh range. As of December 2022, 86.48% of its Assets Under Management (AUM) had ticket sizes in this range. The company has grown from 40,432 customers in FY20 to 94,997 customers as of December 2022.
SBFC’s IPO is expected to attract significant interest from investors, given the company’s solid financials and growth prospects.
About SBFC:
SBFC offer financing solutions to business owners who are typically neglected by conventional banks. SBFC’s strategy involves rethinking the lending process by utilizing a “PhyGital” model that combines technology with genuine face-to-face interactions. This unique approach enables SBFC to provide loans that cater to the specific aspirations of our clients.
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