Today, SBFC Finance will decide on the methodology for allocating IPO shares.Finally, on August 16 the SBFC Finance shares will be listed on the BSE and NSE.

By the end of August 10, SBFC Finance, a non-banking finance firm with a focus on MSME financing, will have decided on the basis of allotment for its IPO shares. Investors can check the allotment status by following a few simple steps on the BSE website or the portal of the IPO registrant rather than visiting any stock broker's office.

The BSE website states:

a) Choose the 'equity' issuance type and the 'SBFC Finance Limited' issue name.

b) Type "Application Number" or "PAN Number" as appropriate.

c) Select the "I am not a robot" checkbox and press the "Search" button.

In case of IPO registrar's portal:

a) Choose the SBFC Finance Limited IPO name.

b) Choose and input the appropriate "Application Number," "Demat Account," or "PAN Number."

c) Complete the "Captcha" and then press the "Submit" button.
Equity shares will be transferred to qualifying investors' demat accounts by August 14 after the basis of allotment is finalized, and refunds will be issued to failed investors' bank accounts by August 11 after the basis of allotment is finalized.

Finally, on August 16th, SBFC Finance shares will be listed on the BSE and NSE.
According to analysts who spoke on the condition of anonymity, "we have seen strong demand for its shares in the grey market as it traded with a 70% premium over the upper price band."

The well-diversified pan-India footprint, affordable valuations, experienced management team, sound financials, and rising asset quality on rigorous credit quality checks are just a few of the explanations given by analysts for the healthy grey market premium.

Grey market premium may also be supported by the enthusiastic response to the first public offering of SBFC Finance, which is sponsored by investment bank Arpwood Group and private equity firm Clermont Group.

During the week of August 3–7, the Rs 1,000 crore public offering was subscribed to 70.16 times, with qualified institutional buyers (QIBs) offering the highest support with bids that were 192.9 times the quota given. The share intended for retail investors was purchased 10.99 times, by high net worth persons 49.09 times, and 5.87 times by employees.

The offer, which had a price range of Rs. 54 to Rs. 57 per share, included a new issue of Rs. 600 crore that will be primarily used to increase the company's capital base to meet future capital requirements resulting from the expansion of the company and its assets.
The selling shareholder, Arpwood Group, would receive a portion of the issuance totaling Rs 425 crore.

With 152 branches spread across 120 locations, SBFC has one of the highest asset under management (AUM) growth rates among Indian NBFCs that specialize on MSME lending, growing at a CAGR of 44% from FY19 to FY23. Disbursement growth also grew strongly during this time, at a CAGR of 40%.


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