SBFC Finance gets Sebi nod for Rs 1200 cr IPO

Mumbai: SBFC Finance Limited a non-deposit-taking non-banking finance company on Tuesday said it has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

IBNS • 27 Jun 2023, 06:27 pm

The initial share-sale comprises fresh issuance of equity shares worth Rs 750 crore and an Offer for Sale (OFS) of Rs 450 crore.

The company had refiled preliminary IPO papers with Sebi in March 2023.
The offer for sale comprises up to Rs 207.75 crore by Arpwood Partners Investment Advisors LLP, Rs 50.99 crore by Arpwood Capital Private Limited, Rs 41.26 crore by Eight45 Services LLP, and Rs 150 crore by SBFC Holdings Pte. Ltd. The offer also includes a reservation for subscription by eligible employees, according to a media release.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Net Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.

The company in consultation with merchant bankers may consider issuing equity shares on a private placement basis, aggregating up to Rs. 150 crores. If such Pre-IPO placement is completed, the fresh issue size will be reduced.

The proceeds from the fresh issuance worth Rs 750 crores will be used towards augmentation of its capital base to meet future capital requirements. As of December 31,2022 the companies CRAR stood at 33.23%.

(With UNI Inputs)