Shares of SBFC Finance gains 62% on trading debut, subscribed over 70 times

The company has 152 branches spread across 120 cities and 16 Indian states

Shares of SBFC Finance surged by over 60 per cent during their trading debut on Wednesday. Its stock finished at Rs. 92.2, up Rs. 35.21, or 61.8 per cent, over its issue price of Rs. 57. At the last close, the company was valued at Rs. 9,813 crore.

The stellar debut follows huge demand for shares of SBFC in its IPO, which was subscribed over 70 times.

SBFC raised Rs. 600 crore in fresh capital through the IPO. 

The IPO also consisted of share sale by selling existing investors to Rs. 425 crore by Arpwood Partners and Eight45 Services.

The company will utilise the money raised in the IPO to fuel its expansion plans.

Analysts said at its IPO price, SBFC was valued at 3.6 times its book value, which, given the company's growth opportunities and strong fundamentals, was attractive.

SBFC, a non-deposit-taking non-banking finance company, offers secured Micro, Small and Medium Enterprises (MSME) loans and loans against gold.

SBFC has one of the highest assets under management (AUM) among MSME-focused NBFCs in India.

The company focuses on disbursing loans with a ticket size in the range of Rs. 500,000 to Rs. 30,00,000. As of March 31, 2023, 87.27 per cent of SBFC's AUM had a ticket size within this range.

It has 152 branches across 120 cities.