SBFC Finance IPO: Issue Subscribed 1.91x On Day 1, What GMP Signals?

The Initial Public Offering (IPO) of Delhi-based SBFC Finance was fully subscribed due to the high level of demand from investors across all categories on its Day 1 of subscription, which began on Thursday, August 3.

With bids totalling 25.47 crore equity shares vs the IPO size of 13.35 crore shares, the offer has been subscribed 1.91 times. According to information available on the stock exchanges, the issue attracted bids for 25,47,12,900 shares as opposed to the 13,35,12,817 equity shares that were issued, at a price range of Rs 54-57. On the first day of bidding, the issue was subscribed a total of 1.91 times.

The highest subscribed portion was Non-Institutional Investors Portion (4.12 times) as 2,81,87,500 shares were on offer for non-institutional investors, and bids for 11,60,84,020 of those shares were received., followed by Retail Portion (2.06 times) as for the category of retail investors, bids were received for 13,52,21,060 shares compared to the 6,57,70,833 shares that were on the open market.

Employee Portion was subscribed 1.10 times as against the 19,71,153 shares that were on sale for this segment, bids for the employee part totalled 21,67,880 during the first day of subscription, and 0.03 times for Qualified Institutional Buyer (QIB) as 3,75,83,331 shares that were on sale for this segment, bids for the QIBs part totalled 12,39,940.

According to the Red Herring Prospectus (RHP), the SBFC Finance IPO consists of a new issue of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 425 crore. The planned initial public offering for SBFC Finance's equity shares has a price range of Rs 54 to Rs 57. The minimum lot size for the SBFC Finance IPO starts at 260 equity shares.

The anchor investors invested Rs 304.42 crore in the SBFC Finance IPO on Wednesday. Abu Dhabi Investment Authority, Carmignac Portfolio, Axis Mutual Fund, Birla Mutual Fund, Loomis Sayles, and Neuberger Berman are just a few of the names on the list of anchor investors. Current participants such as ICICI MF, SBI MF, HDFC MF, Amansa, Malabar, and Steadview Capital participated in the offer along with the anchor board.

The latest IPO GMP from SBFC Finance as of August 4th 2023 at 7:00 AM, today is Rs 40. The expected listing price for the SBFC Finance IPO is Rs 97 (cap price + today's GMP), considering the upper price range of Rs 57.00. SBFC Finance is therefore anticipated to debut on the BSE and NSE platforms on Wednesday, August 16, 2023, at a substantial premium of 70.18%. As a result, according to the grey market, today's IPO GMP trend shows upward and predicts a positive listing.