SBFC Finance Limited: Equity shares are proposed to be listed on NSE and BSE.
New Delhi:
Non-banking finance company SBFC Finance Ltd has filed preliminary papers with capital markets regulator Securities and Exchange Board of India (SEBI) to raise up to Rs 1,600 crore through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the IPO involves a fresh issue of equity shares of up to Rs 750 crore and an offer-for-sale (OFS) component of up to Rs 850 crore by promoter selling shareholders.
The OFS will see sale of shares worth Rs 398.19 crore by Arpwood Partners Investment Advisors LLP, Rs 275 crore by SBFC Holdings Pvt Ltd, Rs 97.72 crore by Arpwood Capital Pvt Ltd and Rs 79.08 crore by Eight 45 Services LLP.
According to the draft papers, the company may explore a pre-IPO placement of Rs 150 crore. If such an appointment is made, the size of the public issue will be reduced.
The Company will utilize the net proceeds from this issue to enhance the capital base of the Company to meet future capital requirements arising out of the growth of its business and assets.
ICICI Securities, Axis Capital and Kotak Mahindra Capital are the book running lead managers of the company issue.
The equity shares are proposed to be listed on NSE and BSE.
Incorporated in 2017, SBFC Finance offers financial solutions such as Loan Against Property, Personal, Secured and Gold Loans. The firm serves entrepreneurs and owners of micro, small and medium sized enterprises in India.
As of June 2022, SBFC Finance has a wide footprint with 135 branches in 104 cities spread across 16 Indian states and two union territories.
The Mumbai-based company is backed by marquee investors such as the Malabar Group, Claremont Group and Arpwood Group.
For the financial year ending March 2022, the company reported its total income of Rs 530.70 crore and reported profit after tax (PAT) of Rs 64.52 crore.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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