Strong Listing | SBFC Finance closes with 62% premium on debut


MSME-focussed non-banking finance company SBFC Finance attracted huge interest from investors on its debut on August 16 as the stock settled on the first day with 62 percent gains despite volatility in the equity markets.

The stock, as expected, opened higher at Rs 82, up 44 percent over issue price of Rs 57 on the NSE. It maintained its opening price, which was also its day’s low, throughout the session and hit an intraday high of Rs 95.45, up 67.5 percent.

At the close, the stock was 61.75 percent higher at Rs 92.20 on the NSE, while on the BSE, it was at Rs 92.21, up 61.77 percent.

In terms of volumes, SBFC Finance traded with a volume of 20.44 crore equity shares on the NSE and 1.09 crore shares on the BSE.

The professionally managed NBFC, backed by marquee institutional investors such as Clermont Group, Arpwood Group, and the Malabar Group, raised Rs 1,025 crore via a maiden public issue last week. The price band for the offer was Rs 54-57 per share.

SBFC Finance majorly focuses on MSME loans which contributed over 80 percent to the total business and around 17 percent of its business comes from the gold loans segment.

Also read: SBFC Finance surges on debut: Should you book profits or hold the stock?

The company has operations in 120 cities across 16 states and 2 union territories with 152 branches. Also, it is a well-diversified company with 31 percent AUM (assets under management) in the North, 38 percent in the South, and the remaining in the West and East.

The AUM as of March FY23 stood at Rs 4,943 crore, growing at robust pace with a 44 percent CAGR during FY19-FY23, while disbursements growth stood at a 40 percent CAGR in the same period.

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