If you want to participate in SBFC Finance IPO, you will have to bid for at least 260 shares.

Bid for at least 260 shares

Asim Dhru, AD & CEO, SBFC Finance Limited said that the subscription to the IPO will open on August 3. To participate in this, investors will have to bid for at least 260 shares. Above this, bidding will have to be done in multiples of 260 shares only. Its price band has been fixed at Rs 54 to Rs 57, which is 5.4 and 5.7 times of the face value of the scrip.

Fresh shares worth Rs 600 crore

Fresh equity shares worth Rs 600 crore will be issued under this IPO. Apart from this, the promoters of the company will also sell shares worth Rs 425 crore under the offer for sale. The proceeds from the sale of fresh shares will be used for expansion of business and assets. Along with this, it will also be used to increase the capital base of the company to meet future capital requirements.

Rs 150 crore has been raised from private placement
SBFC Finance has already raised Rs 150 crore through private placement before starting the bidding process for the IPO. This was done even before the red herring prospectus was filed with the Registrar of Companies. Hence the size of the IPO has come down by Rs 150 crore to Rs 600 crore. In this IPO, the company has also reserved some share for its employees.

DRHP deposited for the second time
This is the second DRHP filing by SBFC Finance with SEBI. Earlier this was done for the first time in November 2022. The plan to raise Rs 1,600 crore through an IPO was disclosed at that time. At that time, it was preparing to bring an offer for sale (OFS) of Rs 850 crore with the issue of new shares worth Rs 750 crore.