The initial public offering (IPO) of non-banking finance company SBFC Finance will open for subscription on August 3. The issue will conclude on August 7. Here are 10 things to know about the offer.

Share Market Live

NSE

1) SBFC Finance plans to raise Rs 1,025 crore from the offering. The price band for the issue will be announced soon.

2) The allocation to anchor investors for the company's IPO will be done on Tuesday, August 2, a day before the issue opens for public subscription.

3) The initial share sale consists of a fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 425 crore.

4) Under the OFS, selling shareholders include, Arpwood Partners Investment Advisors LLP who will offload equity shares worth Rs 306 crore and Arpwood Capital, Eight45 Services LLP will sell shares up to Rs 75 and Rs 43 crore, respectively.

5) As much as 50 percent of the issue has been reserved for qualified institutional Buyers (QIBs), 15 percent for non-institutional bidders and the rest 35 percent will be reserved for retail investors. The offer also includes quota for eligible employees.

6) The net proceeds from the IPO will be utilised to boost its capital base to meet future capital requirements arising out of the growth of business and assets.

7) SBFC Finance had filed preliminary IPO papers with capital markets regulator Sebi in November last year. The company refiled its IPO papers with Sebi in March 2023, reducing the size of the issue to Rs 1,200 crore from Rs 1,600 crore earlier. It received the regulatory nod just a few days earlier.

8) SBFC Finance, in consultation with the promoter-selling shareholders and the book-running lead managers, has completed a private placement of up to Rs 150 crore, and accordingly, the fresh issue size has been reduced by Rs 150 crore to Rs 600 crore.

9) The MSME-focused NBFC had posted a profit of Rs 149.74 crore in FY23, which is a significant growth from Rs 64.8 crore in the previous year. The company's revenue during the year also rose 38.5 percent to Rs 732.8 crore as against the previous year.

10) ICICI Securities, Axis Capital, and Kotak Mahindra Capital Company are the book-running lead managers to the issue, while KFin Technologies is the registrar. The equity shares are proposed to be listed on both BSE and NSE.