SBFC Finance’s initial public offering (IPO) was sold in the range of Rs 54-57 a share, was subscribed to 74.06 times, and was sold between August 3 and August 7.
On Thursday, SBFC Finance is expected to finalize the basis for allotment of its shares. The shadow lender’s Rs 1,025-crore main offering drew a strong reaction from investors throughout the bidding process, and it was subscribed to more than 74 times.
Between August 3-7, SBFC Finance’s initial public offering (IPO) was sold at a price of Rs 54-57 a share, with a lot size of 260 shares. The section for qualified institutional bidders was reserved 203.61 times, while the category for non-institutional investors was reserved 51.82 times. The retail investor quota was bid on 11.60 times, while the employee part was bid on 6.21 times.
SBFC Finance’s grey market premium (GMP) has been relatively steady. Last but not least, SBFC Finance was commanding a premium of Rs 38-40 in the grey market, which was similar to Wednesday’s levels. The present grey market signal indicates a 70% listing for the investors obtaining the allocation.
SBFC Finance, founded in 2008, is a non-banking finance organization that primarily provides secured MSME loans and loans against gold to entrepreneurs, small business owners, self-employed individuals, salaried and working-class citizens. The company has a large pan-India network, with over 157 branches in 105 cities throughout 16 states and two union territories.
The majority of brokerage firms are bullish on the issue, recommending that investors subscribe to it because of its pan-India network, good return ratios, superior business strategy, and cheaper cost of funds. However, they have identified heightened valuation concerns and rate sensitive elements as important risks for the company.
Investors who bid on the issue but have not yet checked their application status can do so on the Bombay Stock Exchange (BSE) website at https://www.bseindia.com/investors/appli_check.aspx. To proceed, they can pick Equity as the offering type and the company name. Only application numbers and the PAN card ID are required before checking ‘I am not a Robot’ and clicking submit.
Investors can also check the allocation status on the internet portal of Kfin Technologies Limited, the issue’s registrar (https://kosmic.kfintech.com/ipostatus). If the allotment is finalized, select the firm name from all alternatives. Fill in the application number, Demat Account number, or PAN ID, as well as the captcha correctly before clicking the submit button.
According to the prospectus, the registrar is a Sebi-registered firm that is qualified to function as such and electronically processes all applications and performs the allocation procedure. It is in charge of adhering to deadlines for updating the electronic credit of shares to successful applicants, delivering and uploading refunds, and responding to any investor-related inquiries.
Bidders who did not receive an allotment in the IPO may see reimbursements begin on Friday, August 11. Others who have been allocated shares should see the credit of shares in their Demat accounts by Monday, August 14. The IPO is expected to go public on Wednesday, August 16.