Non-banking finance company SBFC Finance Ltd has filed primary papers with capital requests controller Sebi to raise up to Rs1,600 crore, through an original public immolation (IPO). The IPO comprises a fresh issue of equity shares adding up to over to Rs 750 crore and an offer- for- trade (OFS) element adding up to Rs 850 crore by protagonist dealing shareholders, according to the Draft Red Herring Prospectus (DRHP).
The OFS will see the trade of shares to the tune of Rs398.19 crore by Arpwood mates Investment counsels LLP, Rs 275 crore by SBFC effects Pte Ltd, Rs97.72 crore by Arpwood Capital Pvt Ltd and Rs79.08 crore by Eight45 Services LLP. Going by the draft papers, the company may explore a pre-IPO placement adding up to Rs 150crore.However, the size of the public issue will be reduced, if similar placement is accepted.
The company will use the net proceeds from the issue towards accelerating the company’s capital base to meet its unborn capital conditions arising out of the growth of its business and means. ICICI Securities NSE-2.17%, Axis Capital and Kotak Mahindra Capital Company are the book running lead directors to the issue. The equity shares are proposed to be listed on NSE and BSE.
Incorporated in 2017, SBFC Finance provides financing results similar as loans against property, particular, secured, and gold loans. The establishment serves entrepreneurs and the possessors of micro, small, and medium- sized enterprises in India. As of June 2022, SBFC Finance has an extensive footmark in 104 metropolises, gauging 16 Indian countries and two union homes, with 135 branches.
The Mumbai- grounded company is backed by marquee investors similar as Malabar Group, Clermont Group and Arpwood Group. For the financial ending March 2022, the company reported its total income of Rs530.70 crore and posted a profit after duty (PAT) of Rs64.52 crore.
About SBFC Finance ltd.
Our legacy is determined by the customers we serve, the jobs we create, and the businesses we help to prosper. SBFC provides financing opportunities to business owners who are underserved by traditional banks. Our approach is to reimagine lending. We have developed a “PhyGital” model which uses technology and authentic in-person service to create loans which support the ambitions of our customers.
We engage directly with small business owners and work through loan applications together, in person, at the customer’s pace. SBFC’s business foundations include a commitment to responsible credit, trusting relationships, and strategic partnerships with large banks.
Our story was born in a storm. It began during the monsoon of 2017 with the simple idea that if India is to achieve its astonishing potential, small business owners must have easy access to financial support when and how they need it.
Why We Exist
The spirit of India’s entrepreneurship is found in small businesses. 60 million entrepreneurs create 40% of India’s GDP and employ 40% of country’s workforce.
However, only 20% of these businesses have access to formal credit. Restricted access to finance is a major obstacle to launching a business in India. Traditional banks don’t suit the needs of entrepreneurs, particularly those with limited documentation or whose incomes are unpredictable.
SBFC sees an opportunity to support this under-served part of market. SBFC’s “PhyGital” business model and innovative methods for assessing credit-worthiness tap into a nationwide trend of accelerating digitalisation and make loans simple, flexible and convenient for some of the people who need it most.