SBFC Finance IPO: Issue subscribed over 70 times on day 3; QIBs steal the show

On the third day of its subscription period, the SBFC Finance IPO demonstrated robust demand, being oversubscribed by a factor of 70.16. The IPO, which was introduced on Thursday, August 3rd, is set to conclude today, Monday, August 7th.

During the third day of the IPO subscription period, there was a notable surge in interest from various investor categories. Qualified Institutional Buyers (QIBs) showed exceptional enthusiasm by subscribing 192.90 times, followed by Non-Institutional Investors (NIIs) at 49.09 times, Retail Investors at 10.99 times, and Employees at 5.87 times.

Overall, the SBFC Finance IPO garnered bids for 9,36,76,63,500 shares against the available 13,35,12,817 shares, as per data sourced from the BSE. Among these, the Non-Institutional Investors segment received bids for 1,38,37,71,480 shares against an allotment of 2,81,87,500 shares, while the Retail Investors portion received bids for 72,26,80,400 shares against the available 6,57,70,833 shares. The Employees segment experienced bids for 1,15,75,460 shares against the offered 19,71,153 shares. Additionally, the QIBs category saw bids for 7,24,96,36,160 shares against 3,75,83,331 shares offered.

The subscription journey of the SBFC Finance IPO saw an uptake of 7.09 times on day 2, while on day 1, it was subscribed 1.91 times, primarily driven by NII and Retail investors.

The IPO\’s price range was established at ₹54 to ₹57 per equity share, and the minimum lot size consists of 260 equity shares, with subsequent multiples of 260 equity shares.

In terms of anchor investments, the SBFC Finance IPO raised ₹304.4 crore on Wednesday from prominent investors like Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, Neuberger Berman, among others. Notably, existing investors such as ICICI MF, SBI MF, HDFC MF, Amansa, Malabar, and Steadview Capital also participated in this offering.

The SBFC Finance IPO is composed of a fresh issuance of equity shares worth ₹600 crore and an Offer for Sale (OFS) of ₹425 crore, as per the Red Herring Prospectus (RHP). The aggregate size of the IPO now stands at ₹1,025 crore.

As indicated in the Red Herring Prospectus (RHP), the net proceeds from the IPO will be allocated to meet future capital requirements, envisaged due to the expansion of SBFC Finance\’s operations and assets.

In the grey market, the SBFC Finance IPO\’s Grey Market Premium (GMP) is currently at +40.50, slightly elevated compared to the previous session. This suggests that SBFC Finance\’s shares are trading at a premium of ₹40.50 in the grey market on Monday, according to data from topsharebrokers.com.

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