SBFC Finance’s IPO Allotment: What Investors Need to Know
SBFC Finance’s IPO Allotment: What Investors Need to Know
If you’ve been keeping an eye on the financial markets, you might have heard about the upcoming listing of SBFC Finance shares on the BSE and NSE. This MSME-focused non-banking finance company has garnered quite a buzz, and today we’ll delve into the details of their IPO allotment status, what to expect, and how you can stay informed about this exciting opportunity.
A Glimpse at SBFC Finance IPO
SBFC Finance has been making waves with its Initial Public Offering (IPO). The company has decided to finalize the basis of allotment for its IPO shares by the end of August 10. Investors are eagerly awaiting this allotment status, as it’s a crucial step in the IPO process.
How to Check the Allotment Status
Checking the SBFC Finance IPO allotment status is relatively straightforward. You have two primary options to do so:
Option 1: BSE Website
Visit the BSE website.
Select the issue type as ‘equity’ and the issue name as ‘SBFC Finance Limited.’
Enter either your ‘Application Number’ or ‘PAN Number.’
Tick the ‘I am not a robot’ box and click on the ‘Search’ button.
Option 2: IPO Registrar’s Portal
Head to the IPO registrar’s portal.
Choose the IPO Name as ‘SBFC Finance Limited.’
Enter either your ‘Application Number,’ ‘Demat Account,’ or ‘PAN Number.’
Fill in the ‘Captcha’ and click the ‘Submit’ button.
The Allotment Process
Once the basis of allotment is finalized, equity shares will be seamlessly transferred to the demat accounts of eligible investors by August 14. For those who were not successful in the allotment process, refunds will be credited to their bank accounts by August 11.
Mark Your Calendar
The big day is approaching! The listing of SBFC Finance shares on the BSE and NSE is set to take place on August 16. This milestone marks the culmination of a process that investors have been eagerly anticipating.
Behind the Scenes: Grey Market Buzz
Analysts have been closely watching the SBFC Finance IPO, noting strong demand for its shares in the grey market. The shares have been trading at a whopping 70 percent premium over the upper price band. This impressive performance in the grey market could be attributed to various factors.
Factors Driving Grey Market Premium
Several factors have contributed to the healthy grey market premium observed for SBFC Finance shares:
Pan India Presence: The company’s well-diversified presence across India has garnered significant attention.
Reasonable Valuations: Investors find the company’s valuations to be reasonable and attractive.
Professional Management Team: A competent management team adds to the company’s appeal.
Healthy Financials: SBFC Finance boasts healthy financials, which resonate with potential investors.
Improved Asset Quality: Stringent credit quality checks have led to an improvement in asset quality.
IPO Success Factors
The successful response to the IPO can also be attributed to the backing of private equity company Clermont Group and investment bank Arpwood Group. Their support has likely bolstered the grey market premium.
Impressive Subscription Numbers
During August 3-7, the SBFC Finance IPO witnessed remarkable subscription numbers. The public issue, valued at Rs 1,025 crore, was subscribed a staggering 70.16 times. Qualified institutional buyers (QIBs) led the charge, bidding a remarkable 192.9 times the allotted quota. Retail investors showed strong interest, booking the allotted portion 10.99 times. High net worth individuals (HNIs) also demonstrated keen interest, bidding 49.09 times, while employees showed support with 5.87 times the reserved portion.
Fund Utilization
The IPO comprised a fresh issue of Rs 600 crore, aimed at boosting the company’s capital base to accommodate future growth. Additionally, a Rs 425 crore offer for sale portion is destined for Arpwood Group, the selling shareholder.
SBFC Finance’s Strong Performance
Among MSME-focused NBFCs in India, SBFC Finance has showcased remarkable growth. With a Compound Annual Growth Rate (CAGR) of 44 percent in assets under management (AUM) during FY19-FY23 and a robust CAGR of 40 percent in disbursements during the same period, the company’s strong performance is evident. This growth has been fueled by the company’s presence in 120 cities with 152 branches.
Conclusion
The upcoming listing of SBFC Finance shares is an event that investors have been eagerly anticipating. As the company finalizes the basis of allotment for its IPO shares, investors can stay informed by checking the BSE website or the IPO registrar’s portal. The strong demand for shares in the grey market, the impressive subscription numbers, and the company’s strong fundamentals have contributed to the excitement surrounding this IPO. SBFC Finance’s growth story in the MSME-focused NBFC sector further adds to its appeal.
FAQs
1. How can I check the SBFC Finance IPO allotment status?
You can check it on the BSE website or the IPO registrar’s portal using your Application Number, Demat Account, or PAN Number.
2. When will the equity shares be transferred to investors’ demat accounts?
Eligible investors can expect their shares in their demat accounts by August 14.
3. When will refunds be credited to unsuccessful investors?
Refunds for unsuccessful investors will be credited by August 11.
4. When is the listing of SBFC Finance shares scheduled?
The listing is set to take place on August 16.
5. What factors have contributed to the grey market premium?
The grey market premium is attributed to factors like the company’s pan India presence, reasonable valuations, professional management team, healthy financials, and improved asset quality.
Thank you for reading this post. I hope you find this informative and useful. Please share your thoughts, opinions, and suggestions in the comments below.
Disclaimer:
The information provided in this article is for informational purposes only and should not be considered as a financial or investment advice. Trading and investing in the stock market involves risk, and individuals should exercise caution and conduct their own research before making any investment decisions. The analysis and recommendations presented in this article are based on publicly available information and historical data, and there is no guarantee that future performance will match the past performance discussed in this article. Stock prices and market conditions can change rapidly, and past performance is not indicative of future results. The author and the website make no warranties or representations, express or implied, as to the accuracy or completeness of the information provided. The author and website will not be liable for any errors or omissions in the content or for any actions taken based on the information provided in this article. Investing in the stock market involves risk, including the risk of loss of capital. Individuals should carefully consider their financial investments.
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