SBFC Finance Limited

About SBFC Finance Limited IPO  Incorporated in 2008, SBFC Finance Limited is a systemically important, non-deposit taking non-banking finance company. It offers secured MSME (Micro, Small and Medium Enterprises) loans and loans against gold to entrepreneurs, small business owners, self-employed individuals and salaried and working class individuals.  With 152 branches, it has a diversified pan-India presence across 120 cities spanning 16 Indian states and two union territories. It has introduced platforms like ‘Leviosa’ and ‘Gold Genie’ for the onboarding and disbursal of loans.  Between FY19 and FY23, the company has grown its AUM (Assets Under Management) at 44% CAGR and its disbursement at 40% CAGR. Moreover, it operates in an industry where less than 15% of MSMEs have access to credit in any manner, as of March 2022. And in FY23, the credit gap was estimated at around ₹92 trillion, offering growth potential for financial institutions.  SBFC Finance Limited is now coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to augment the company’s capital base to meet future capital requirements. Its shares will be listed on the NSE and the BSE.  Here are key details about the SBFC Finance IPO:     Company Name  SBFC Finance Limited   Company Type  Private    Company Established On  2008   SBFC Finance IPO Opening Date  3rd August 2023    SBFC Finance IPO Closing Date  7th August 2023   SBFC Finance IPO Allotment Status  10th August 2023    Credit of Shares to the Demat Account  14th August 2023   SBFC Finance IPO Listing Date  16th August 2023    SBFC Finance IPO Face Value  10   SBFC Finance IPO Lot Size  260    SBFC Finance IPO Issue Size  1025 Crores   SBFC Finance IPO to be Listed on  BSE, NSE    SBFC Finance IPO Price band  ₹ 54 - 57 per share        Financial snapshot     Particulars  FY21  FY22  FY23    Revenue  ₹ 507 crore  ₹ 529 crore  ₹ 732 crore    Net Profit  ₹ 85 crore  ₹ 64 crore  ₹ 149 crore              Here’s a quick look at SBFC Finance Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Between FY21 to FY23, the company's total revenue increased at a CAGR of over 13%. Meanwhile, its net profit increased by over 20% CAGR during the same period.  Enjoys an advantageous position as less than 15% of the approximate 70 million MSMEs in India have access to formal credit in any form, as of March 2022.  Diversification across India allows for lower concentration risk as 28.95% of its branches are present in the North, 31.58% in the South and 39.47% in the West and East collectively, as of March 31, 2023.  A sales team of 1,911 employees as of 31 March 2023 helps serve existing customers and attract new customers.  Track record of profitable growth with a 27% CAGR growth in its loan against gold portfolio between FY21 and FY23.  A healthy liability franchise with low cost of funds where the average cost of borrowing was 8.11%, 7.65% and 8.22% for FY21, FY22 and FY23, respectively.   Risks and threats   Risk of non-payment or default by borrowers, especially because self-employed customers and MSMEs are often perceived to be higher risk customers.  Business is particularly vulnerable to interest rate risk and volatility in interest rates for both lending and treasury operations.  Faces competition from companies like IIFL Finance, Muthoot Finance, Manappuram Finance, Veritas Finance etc.            SBFC Finance Limited IPO details  | SBFC Finance IPO date  According to the offer document filed by the company with the SEBI, the SBFC Finance IPO’s opening date – in other words, the SBFC Finance IPO launch date – will be 3rd August 2023. The SBFC Finance IPO closing date is 7th August 2023. After this, investors will be updated about the allotment status on 10th August 2023.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 14th August 2023. The SBFC Finance IPO listing date is 16th August 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  | SBFC Finance IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The SBFC Finance IPO price band has been set between ₹54 and ₹57 per share. Interested investors can choose a price within this band to apply for the IPO.  The SBFC Finance IPO listing price will be determined on 16th August 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.  | SBFC Finance IPO Lot size  The SBFC Finance IPO details have been declared. The SBFC Finance IPO lot size is set at 260 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the SBFC Finance IPO issue size is approx ₹1,025 crore.           How to apply for the SBFC Finance Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the SBFC Finance IPO, here are the steps that you need to follow.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the SBFC Finance Ltd IPO on Upstox:   Log in to your Upstox account, using your six-digit PIN  After logging in, click on ‘Discover’  On the ‘Discover’ tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘SBFC Finance IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the SBFC Finance Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the SBFC Finance IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After logging in, click on ‘Discover’  On the ‘Discover’ page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your SBFC Finance IPO allotment status will be mentioned            Open a demat account with Upstox to apply for the SBFC Finance Limited IPO  To apply for the SBFC Finance IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque and your bank statement as needed  Complete the e-verification using the OTP sent to your registered mobile number   This is all it takes to open a demat account with Upstox. Easy and quick, right?           Upstox – trading app to apply for the SBFC Finance Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the SBFC Finance IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, due to its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.