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SBFC Finance files ₹1600cr IPO papers

November 09, 2022

SBFC Finance files ₹1600cr IPO papers
Non-banking finance company SBFC Finance Ltd has filed preliminary papers with capital markets regulator Sebi to raise up to ₹1,600 crore, through an initial public offering (IPO).

The IPO comprises a fresh issue of equity shares aggregating to up to ₹750 crore and an offer-for-sale (OFS) component aggregating up to ₹850 crore by promoter selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

The OFS will see the sale of shares to the tune of ₹398.19 crore by Arpwood Partners Investment Advisors LLP, ₹275 crore by SBFC Holdings Pte Ltd, ₹97.72 crore by Arpwood Capital Pvt Ltd and ₹79.08 crore by Eight45 Services LLP.

Going by the draft papers, the company may explore a pre-IPO placement aggregating to ₹150 crore. If such placement is undertaken, the size of the public issue will be reduced.

The company will utilise the net proceeds from the issue towards augmenting the company’s capital base to meet its future capital requirements arising out of the growth of its business and assets.

ICICI Securities, Axis Capital and Kotak Mahindra Capital Company are the book running lead managers to the issue.

The equity shares are proposed to be listed on NSE and BSE.

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