SBFC Finance Ltd raises Rs 304 crore from anchor investors

SBFC Finance Limited (”Company”) is a systemically important, non-deposit taking non-banking finance company (“NBFC-ND-SI”) offering Secured MSME Loans and Loans against Gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working class individuals, has garnered Rs 304.43 crore from anchor investors ahead of its Initial Public Offering that opens for public subscription on Thursday, August 3, 2023. The Company informed the bourses that it allocated 5,34,07,893 shares at Rs. 57 per share on Wednesday, August 2, 2023, to anchor investors.

 

The Anchor Investor list of Domestic and Foreign investor includes the names of Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, Neuberger Berman among others. The anchor list also saw existing investors ICICI MF, SBI MF, HDFC MF, Amansa, Malabar and Steadview Capital participating in the offer.

Out of the total allocation of 5,34,07,893 equity shares to the anchor investors, 2,23,08,260 equity shares were allocated to 10 domestic mutual funds through a total of 18 schemes amounting to Rs 127.15 crore i.e. 42% of the Total Anchor Book Size.

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book running lead managers and KFin Technologies Limited is the registrar for the issue.

 

IPO Details

The public issue with a face value of Rs 10 per equity share comprises of up to Rs 600 crore of fresh issue and an offer for sale of up to Rs 425 crore. The offer also includes a reservation for a subscription by eligible employees.

 

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) on Thursday, August 3, 2023, and closes on Monday, August 7, 2023. The price band for the Offer has been determined at Rs 54 – Rs 57 per equity share.

 

The IPO will fetch Rs 1025 crore at the upper end of the price band.

 

Investors can bid for a minimum of 260 equity shares and in multiples of 260 equity shares thereafter.

 

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.