SBFC Finance Debut: Shares List at 44% Premium on BSE and NSE After Successful IPO

On August 16, SBFC Finance had a robust entry into the secondary market on Dalal Street. This followed its IPO of Rs 1,025 crore, which received an overwhelming subscription of over 70 times the offered shares.

On Wednesday, SBFC Finance’s shares had a notable start in the secondary market on Dalal Street, following a mid-week break for Independence Day. The stock commenced trading at Rs 81.99 each on the BSE, indicating a premium of Rs 24.99 or 43.8% over the higher end of the IPO price range. Meanwhile, on the NSE, the stock initiated at Rs 82 per share, showcasing a premium of Rs 25 or 43.9%.

SBFC Finance, an NBFC located in Mumbai, recently completed its IPO process. This IPO included new shares valued at Rs 600 crore and a share sale worth Rs 425 crore. The IPO saw a remarkable subscription of 70 times the available equity.

Institutional investors showed robust interest in the initial share offering, leading to bids being placed for 936.8 crore shares, surpassing the available 13.4 crore shares, as per preliminary exchange data.

Here’s the varied response from distinct categories of investors to the offering:

Investor category Reservation Subscription (No. of times the shares on offer)
Qualified institutional buyers (QIBs) 50% 192.9
Non-institutional investors (NIIs)/high net-worth individuals 15% 49.1
Retail investors 35% 11
Total 70.2
Source: Exchange data

What actions should investors consider taking?

Sandeep Jain, the Director of Trade Swift Broking, who had anticipated a 50% premium for the stock’s listing, advises investors to retain their SBFC Finance shares.

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“He mentioned to Zee Business that the impressive management of SBFC Finance and its strong listing are expected to stimulate the activity of numerous other stocks in the NBFC sector. He also highlighted the positive performance of NBFCs in terms of their results.”

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