SBFC Finance Limited is a systemically important, non-deposit-taking non-banking finance company (“NBFC-ND-SI”) operating in India. The company specializes in offering Secured MSME Loans and Loans against Gold, primarily catering to entrepreneurs, small business owners, self-employed individuals, and salaried or working-class individuals.
SBFC Finance Limited has accomplished remarkable growth, with an outstanding CAGR of 40% in assets under management (AUM) from Fiscal 2019 to 2022 according to a CRISIL Report. Also, they have experienced robust disbursement growth, with a CAGR of 39% during the same period.
As a substantial proportion of MSMEs remain unregistered on UDYAM, the company recognizes the significant credit gap for MSMEs in India. Traditional institutions have hesitated to lend to underserved or unserved MSMEs and self-employed persons, forcing them to seek financing from unorthodox sources.
SBFC Finance Limited focuses on disbursing loans with ticket sizes ranging from 05 Lakhs to 30 Lakhs to fill this gap. They have a considerable presence in tier II and tier III cities, where they promote entrepreneurship. The average ticket size for their loan products is 9.80 lakhs for Secured MSME Loans, 1.00 lakh for Loans against Gold, and 6.90 lakhs for other unsecured loans.
The company places great importance on risk management and has a low Gross NPA ratio for their Secured MSME Loans in the specified ticket size range. They have effectively diversified their AUM across different zones and states in India, reducing concentration risk across industries and sectors.
SBFC Finance Limited has a pan-India presence and a large network within its target customer sector.SBFC Finance Limited had a notable presence in 105 cities across 16 Indian states and 02 union territories with a total of 137 branches as of 31 December 2022.
SBFC Finance Limited IPO Complete Details:
| IPO Date | 03 August 2023 to 07 August 2023 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE NSE |
| Face Value | 10 Rs. Per Share |
| Price | 54 to 57 Rs. |
| Lot Size | 260 |
| Issue Size | shares (Rs.1,025.00 Cr) |
| Fresh Issue | shares (Rs. 600.00 Cr) |
| Offer For Sale | shares (Rs. 425.00 Cr) |
| Listing Date | 16 August 2023 |
SBFC Finance Limited Timetable:
| Activity | Date* |
|---|---|
| Opening Date | 03 August 2023 |
| Closing Date | 07 August 2023 |
| Allotment | 10 August 2023 |
| Initiation of Refunds | 11 August 2023 |
| Credit of Shares to Demat Account | 14 August 2023 |
| Listing Date | 16 August 2023 |
Company Financial Details:
| Period Ended | Assets | Revenue | Profit After Tax | Net Worth | Borrowings |
|---|---|---|---|---|---|
| 31 March 2020 | 4,207.99 | 444.85 | 35.50 | 752.09 | 3,056.38 |
| 31 March 2021 | 4,231.19 | 511.53 | 85.01 | 944.72 | 2,772.55 |
| 31 March 2022 | 4,515.03 | 530.70 | 64.52 | 1,026.78 | 2,948.82 |
| 31 December 2022 | 5,334.82 | 531.69 | 107.03 | 1,421.63 | 3,409.48 |
| 31 March 2023 | 5,746.44 | 740.36 | 149.74 | 1,466.88 | 3,745.83 |
AS OF NOW, the GMP OF SBFC Finance Limited is Around 40 Rs.