SBFC shares closed at 92 per share; 62% above its issue price

PMumbai, 16th August 2023 (GNI); (L-R) Mr. Aseem Dhru, MD & CEO, SBFC Finance, Ashish kumar Chauhan, MD & CEO, NSE and Mr. Mahesh Dayani, CBO, SBFC Finance at the Listing Ceremony, NSE in Mumbai – photo by GNI

Mumbai, August 16, 2023 (GNI): SBFC Finance Limited, a systemically important, non-deposit taking non-banking finance company (“NBFC-ND-SI”) offering Secured MSME Loans and Loans against Gold, with a majority of its borrowers being entrepreneurs, small business owners, self-employed individuals, salaried and working class individuals makes a strong debut on the exchanges to close over 62% premium.

The scrip listed Rs 81.99 per share on BSE and Rs 82 per share on NSE, at a premium of 43.84% and 43.86% respectively. The company’s share price closed at Rs 92.21 per share on the BSE, a 61.77% premium, and at Rs 92.65 per share on the NSE, a 62.54% premium.

As per NSE, the total quantity traded stood at 2044.17 lakh shares, on BSE the total Quantity stood at 109.19 lakh shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 1915.21 crore.

“We are grateful to have reached this tremendous milestone for SBFC,” said Aseem Dhru, MD and CEO of SBFC Finance. “The IPO begins an important new chapter in our mission to partner with India’s entrepreneurs on their journey to prosperity for their businesses and their families. SBFC will continue to reimagine lending, by expanding our network and innovating our products to serve the needs of India’s micro, small and medium sized enterprises (MSMEs), which are the engine of the country’s economy.”

“It has been a remarkable team effort to get SBFC to this moment in our journey while always keeping the customer at the centre of everything we do,” said Mahesh Dayani, Chief Business Officer of SBFC Finance. “We remain laser-focused on building a platform that can reach into the heart of India to find customers who deserve an opportunity to thrive as business owners and advance the well-being of their communities.”

The Market Capitalization of the Company at today’s closing price stood at Rs. 9,813.09 Crore as per BSE and Rs. 9,859.91 Crore as per NSE.

SBFC Finance is an NBFC in India that concentrates on supporting Micro, Small, and Medium Enterprises (“MSMEs”). According to a CRISIL Report, among MSME-focused NBFCs in India, the company has achieved one of the highest growth in its assets under management (“AUM”), with a Compound Annual Growth Rate (“CAGR”) of 44% during the period from Fiscal 2019 to Fiscal 2023. Additionally, it has experienced robust disbursement growth, with a CAGR of 40% between Fiscal 2021 and Fiscal 2023. As of March 31, 2023, the average ticket size for its Secured MSME Loans stood at ₹0.99 million and for its Loans Against Gold stood at ₹0.09 million, based on disbursed amounts. The Company’s total AUM as of March 31, 2023, amounted to ₹4,942.82 crore, and it had provided loans to 102,722 customers as of such date.

The Company primarily caters to customers in tier II and tier III cities, thereby fostering entrepreneurship in these regions. It focuses on serving customers who have a strong credit history but may lack formal proof of income documents. By focusing on this niche, the Company aims to address the funding needs of underserved individuals and businesses. As of March 31, 2023, the Company boasts an expansive footprint in 120 cities across 16 Indian states and two union territories, operating through a network of 152 branches. This widespread presence enables the Company to reach a diverse customer base and provide financial assistance to those in need throughout the country.

ICICI Securities Limited, Axis Capital Limited and Kotak Mahindra Capital Company Limited are the book running lead managers, while KFin Technologies Limited is the registrar to the offer.ends GNI