SBFC Finance IPO Day 2: Issue subscribed 6.6 times so far; retail portion booked over 5x

SBFC Finance IPO has been subscribed 6.67 times so far on August 4, the second day of the bidding process. The public issue received bids for 84.40 crore shares as against the issue size of 13.35 crore shares.

SBFC Finance IPO was subscribed 5.10 times in the retail category, while it was subscribed 4.70 times in Qualified Institutional Buyers’ (QIB) category. Non-Institutional Investors’ (NII) portion was booked 13.25 times till 4:45 pm.

SBFC Finance IPO Details

The initial public offering (IPO) of SBFC Finance opened for subscription on August 3 and will close on Monday, August 7. The company has fixed the IPO price band at ₹54 to ₹57 per equity share.

SBFC Finance IPO comprises fresh issuance of equity shares worth ₹600 crore and an offer for sale (OFS) of ₹425 crore. The total offer size of SBFC Finance IPO now is ₹1,025 crore.

SBFC Finance IPO lot size consists of a minimum of 260 equity shares and in multiples of 260 equity shares thereafter. The minimum investment amount required for retail investors is ₹14,820.

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On Wednesday, SBFC Finance IPO raised ₹304.4 crore from anchor investors. The anchor investor list includes 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.

A total of 5,34,07,893 equity shares were allotted to the anchor investors, of which 2,23,08,260 equity shares were allocated to 10 domestic mutual funds through a total of 18 schemes for a total of ₹127.15 crore, or 42% of the anchor book size.

According to red herring prospectus (RHP), SBFC Finance intends to use the net proceeds to meet future capital requirements that are anticipated to result from the expansion of their company’s operations and assets

SBFC Finance IPO GMP today

SBFC Finance IPO GMP today, or grey market premium today, is ₹40 per share. This indicates SBFC Finance share price was trading at a premium of ₹40 in the grey market on Friday, according to topsharebrokers.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of SBFC Finance share price is ₹97 apiece, which is 70.18% higher than the IPO price.

Updated: 04 Aug 2023, 04:48 PM IST