SBFC Finance IPO: GMP jumps after strong subscription status. Should you apply as bidding ends on Monday?


SBFC Finance IPO: The initial public offering (IPO) of SBFC Finance Limited opened for bidding on 3rd August 2023 and the public offer will remain open for bidding till 7th August 2023. This means, there is just one trade sesion left for investors who want to apply for the SBFC Finance IPO. After two days of bidding, SBFC Finance IPO subscription status suggests that investors are looking at the initial offer with interest as it has been subscribed over 7 times in two days of subscription. Meanwhile, grey market is also dropping positive signals in regard to SBFC Finance IPO. According to market observers, SBFC Finance shares are available at a premium of 40 in grey market today.

SBFC Finance IPO GMP today

As per the market observers, SBFC Finance IPO grey market premium (GMP) today is 40, which is Re 1 higher from Friday GMP of 39. They said that Indian stock market snapping its three days losing streak has played a big role in lifting the grey market mood about the SBFC Finance IPO. They said that unlisted stock market mood may further improve if the rally gets extended on Monday. Observers went on to add that grey market is signaling strong listing gain from the public offer on SBFC Finance IPO listing date, which is most likely on 16th August 2023. They said that SBFC Finance IPO GMP of 40, is around 70 per cent higher from the SBFC Finance IPO price band of 54 to 57 per equity share. This means grey market today is expecting over 70 per cent gain for investors on SBFC Finance IPO listing date, which is most likely on 16th August 2023.

SBFC Finance IPO subscription status

In two days of bidding, SBFC Finance IPO has been subscribed 7.09 times whereas its retail portion has been subscribed 4.93 times. The book build issue has been subscribed 12.95 times in NII category whereas it has been subscribed 6.71 times in QIB category.

SBFC Finance IPO review

Giving ‘subscribe’ tag to SBFC Finance IPO, Geojit Securities report says, “At the upper price band of Rs.57, SBFC is available at a P/B of 2.6x (FY23), lower than industry peers’ valuations. Considering the lower valuation, consistent improvement in asset quality, and decent business performance, we assign a “Subscribe” rating for the issue on a short-to medium-term basis.”

Hem Securities has also given ‘buy’ tag to the public offer citing, “Company has diversified pan-India presence with an extensive network to cater to target customer segment. Due to 100% inhouse sourcing in turn leading to superior business outcomes. Company has Comprehensive credit assessment, underwriting and risk management framework with extensive on-ground collections infrastructure leading to maintenance of robust asset quality. Company has healthy liability franchise with low cost of funds. Company has shown consistent financial performance backed by profitable growth and experienced, cycle-tested and professional management team with good corporate governance backed by marquee investors. Hence we recommend to “Subscribe” issue.”

LKP Securities, Marwari Shares and Finance, Nirmal Bang, SBICAP Securities, swastika Investmart and Ventura Securities have also given ‘subscribe’ tag to SBFC Finance IPO. However, HDFC Securities and JM Financial Institutional Securities have not rated this public issue while sharing its research report about SBFC Finance IPO.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 05 Aug 2023, 12:26 PM IST

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