Non-banking lender SBFC Finance's Rs 1,025 crore IPO to open on August 3. Check details

economictimes.indiatimes.com:

SBFC Finance will open for public subscription on August 3 and close on August 7. The allocation to anchor investors will be done on August 2. The price band for the issue will be announced soon.

SBFC Finance refiled its IPO papers with markets regulator Sebi in March this year, reducing the size of the issue to Rs 1,200 crore from Rs 1,600 crore earlier. It received the regulatory nod just a few days earlier. The company, in consultation with the promoter-selling shareholders and the book-running lead managers, has completed a private placement of up to Rs 150 crore, and accordingly, the size of the fresh issue has been reduced further.

The initial share sale comprises fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 425 crore. The company had filed preliminary IPO papers with Sebi in November last year. Under the OFS, selling shareholders include, Arpwood Partners Investment Advisors who will offload equity shares worth Rs 306 crore and Arpwood Capital, Eight45 Services will sell up to Rs 75 and Rs 43 crore, respectively.

About 50% of the offer will be available for qualified institutional Buyers (QIBs), 15% for non-institutional bidders and 35% will be reserved for retail investors. The offer also includes quota for eligible employees. The proceeds from the fresh issuance worth Rs 600 crore will be used to boost its capital base to meet future capital requirements.

The company is focused on lending to entrepreneurs, small business owners, self-employed and salaried individuals. For the nine-months ended December, the company had reported revenue of Rs 525. The company's profit stood at Rs 107 during the same period.