IPO screener: SBFC Finance issue opens today in Rs 54-57 price band

The Rs 1,025-crore initial public offering of SBFC Finance opens today. The offer will close on August 7. The NBFC is planning to raise Rs 1,025 crore via a public issue, comprising a fresh issuance of shares worth Rs 600 crore, and an offer-for-sale (OFS) of Rs 425 crore by the promoters.

The price band for the offer has been set at Rs 54-57.

Investors can buy a minimum of 260 equity shares in the IPO and in multiples of 260 shares thereafter. The offer is being made through the book-building process, wherein not more than 50 per cent of the offer will be available for allocation to Qualified Institutional Buyers, not less than 15 per cent for allocation to non-institutional investors, and not less than 35 per cent will be available for allocation to retail individual investors. The offer also includes reservation for a subscription by eligible employees. 

Promoter entities – Arpwood Partners Investment Advisors LLP – will be selling shares worth Rs 306.25 crore, Arpwood Capital Rs 75.16 crore, and Eight45 Services LLP Rs 43.59 crore via OFS.

As part of the IPO process, the company has raised Rs 304 crore from anchor investors. The IPO Committee of the board of directors has finalised allocation of 5,34,07,893 equity shares to anchor investors at the Anchor Investor Allocation Price of ₹57 per equity share

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

SBFC Finance will utilise the fresh issue proceeds, excluding IPO expenses, mainly for augmenting its capital base to meet future capital requirements arising out of the growth of the business and assets, while the offer for sale money will go to selling shareholders.