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Initial Public Offering (IPO) of Delhi-NCR-based SBFC Finance Ltd, 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 was subscribed 70.16 times on the final day of bidding led by QIB and NII.

The issue received bids of 9,36,67,32,180 shares against the offered 13,35,12,817 equity shares, at a price band of ?54-57, according to the data available on the stock exchanges.

Qualified Institutional Buyer Portion was the most subscribed with a subscription of 192.90 times, followed by Non-Institutional Investors Portion with 49.09 times. Retail Portion was subscribed 10.98 times, whereas, Employee Portion was subscribed 5.86 times.

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book running lead manager and KFin Technologies Limited is the Registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.

Company Information

SBFC Finance is a prominent NBFC in India that concentrates on supporting Micro, Small, and Medium Enterprises (MSMEs). According to a CRISIL Report, the company has achieved exceptional growth in its assets under management (AUM), with a remarkable Compound Annual Growth Rate (CAGR) of 44% during the period from Fiscal 2019 to Fiscal 2023. Additionally, it has experienced a healthy disbursement growth, with a CAGR of 40% between Fiscal 2021 and Fiscal 2023. As of March 31, 2023, the average ticket size (ATS) for its various loan categories stood at ?0.99 million for Secured MSME Loans, ?0.09 million for Loans against Gold, and ?0.69 million for other unsecured loans, based on disbursed amounts. The company's total Asset Under Management as of March 31, 2023, amounted to ?4,942.82 crore, and it had provided loans to 1,02,722 customers by that date.

SBFC Finance primarily caters to customers in tier II and tier III cities, playing a crucial role in fostering entrepreneurship in these regions. It focuses on serving customers who have a strong credit history but may lack formal proof of income documents. By focusing on this niche, the company aims to address the funding needs of deserving individuals and businesses. As of March 31, 2023, SBFC Finance boasts an expansive footprint in 120 cities across 16 Indian states and two union territories, operating through a network of 152 branches. This widespread presence enables the company to reach a diverse customer base and provide financial assistance to those in need throughout the country.

The table below shows subscription data for all the categories of investors:

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