SBFC Finance makes a strong Dalal Street debut, lists at 44% premium at Rs 82

Shares of SBFC Finance made a strong debut at Dalal Street on Wednesday as the shadow lender was listed at Rs 82, a premium of 44 per cent over its issue price of Rs 57, on the National Stock Exchange (NSE). Similarly, the stock was listed at the same premium at Rs 81.99 on BSE.

A day before its listing, shares of SBFC Finance were commanding a grey market premium of Rs 30, suggesting a healthy listing pop for the investors amid the muted market sentiments. However, the issue was commanding a premium of more than Rs 40 apiece about a week ago.

SBFC Finance was selling its shares in the range of Rs 54-57 apiece during the three-day bidding process between August 3 to August 7 with a lot size 260 equity shares and its multiples thereafter. The company raised about Rs 1,025 crore from its initial stake sale.

The issue was overall subscribed 74.06 times. The portion for qualified institutional bidders was booked 203.61 times, while the non-institutional investors' category was subscribed 51.82 times. The quota reserved for retail investors was subscribed 11.60 times, while the employee portion fetched 6.21 times bids.

Incorporated in 2008, SBFC Finance is a non-banking finance company which provides secured MSME loans and loans against gold primarily to entrepreneurs, small business owners, self-employed individuals, and salaried and working-class individuals. The company has an extensive pan-India network in over 157 Branches in 105 cities in 16 states and two union territories.

SBFC Finance extends its services to entrepreneurs and small business owners who are underserved or unserved by traditional financial institutions. The company has an extensive pan-India network, expanded in over 466 districts in 16 Indian states and two union territories. They currently have 152 branches.