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IDBI Capital's IPO Report
SBFC Finance launched its initial public offer yesterday, which will close on August 7.
The company's IPO has a total offer size of Rs 1,025 crore, of which Rs 425 crore worth of shares will be allocated through the offer for sale.
Summary
Led by Mr. Aseem Dhruv, SBFC Finance is a a systemically important, non-deposit taking non-banking finance company offering secured micro, small and medium enterprise loans and loans against gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working class individuals.
Among MSME-focused non-banking financial companies in India, SBFC Finance has one of the highest assets under management growth (at a compound annual growth rate of 44% FY19-FY23) and has also witnessed healthy disbursement growth, at a CAGR of 40% FY21 and FY23.
SBFC Finance has a diversified pan-India presence, with an extensive network in its target customer segment and offers products and services through 120 cities in 16 Indian states and two union territories' spread across 152 branches.
At upper price band, IPO is priced at price/book value of 2.9 times based on FY23 with return on asset of 2.9%.
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