- Date : 28/07/2023
- Read: 3 mins
Looking for the next big investment opportunity? Curious about SBFC Finance IPO launching on August 3, striving to raise Rs 1,025 crore? Seize the chance to grow your wealth! Read more.
Get ready for a financial milestone as SBFC Finance, the non-banking finance company backed by Singapore's Clermont Group, gears up to open its highly anticipated initial public offering (IPO) on August 3. With a target of raising an impressive Rs 1,025 crore, this IPO promises to be a game-changer in the world of finance. Don't miss out on this opportunity to be part of the future of investment and witness the birth of a new era. This article discusses the prospects, potential, and possibilities that lie ahead of the company.
- Company’s profit grow by 132%.
- Company aims to raise Rs 1025 crore.
- Company's AUM grew by 55% in FY23
- Subscription dates: August 3-7, 2023.
SBFC Finance's IPO is a promising opportunity for investors to participate in the growth of a leading NBFC with a strong track record. The company's impressive financial performance and strategic focus on the MSME sector make it well-positioned for future growth. However, investors should carefully consider potential challenges that lie ahead, such as market volatility and regulatory changes, before making investment decisions.
Factors to Weigh Before IPO Investment
Impressive financial results
SBFC Finance's financial performance in FY23 was impressive, with a substantial profit growth of 132%. Revenue from operations also grew by 38.5%, and net interest income surged by 49%. The company's net interest margin also improved to 9.32%.
Strong asset quality
SBFC Finance's asset quality has improved year-over-year. Gross NPA decreased by 0.31%, net NPA decreased by 0.22%, and provision coverage ratio improved to 42.04%.
Impressive growth in AUM
SBFC Finance's AUM grew by 55% in FY23 to INR 4942.8 crore, reflecting the company's ability to attract borrowers and expand its lending operations.
Key features of the ongoing IPO
- Fresh issue: INR 600 crore
- OFS: INR 425 crore
- Subscription dates: August 3-7, 2023
- Anchor investor allocation: August 2, 2023
- ICICI Securities, Axis Capital and Kotak Mahindra Capital are the merchant bankers for the issue.
- KFin Technologies is the registrar for the offer.
- The fresh issuance worth INR 600 crore will boost SBFC Finance’s capital base to meet future capital requirements.
- SBFC Finance, supported by top investors, provides loans ranging from Rs 5 lakh to Rs 30 lakh. In December 2022, 86.48% of its assets under management fell within this range.
- With 137 branches in 105 cities, it has expanded its customer base from 40,432 in FY20 to 94,997 by December 2022.
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.
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