44% premium listing for SBFC Finance
SBFC Finance IPO hit the bourses today and opened in the secondary market at Rs 82 per share. Its IPO price was Rs 57 per share.
One more IPO has made fortunes for the investors. Yes, we are talking about SBFC finance which got listed at a premium of around 44%.
SBFC Finance IPO hit the bourses today and opened in the secondary market at Rs 82 per share. Its IPO price was Rs 57 per share. This implies listing at a premium of 43.8%. Even during the bidding process good response was witnessed as it got subscribed 74.06 times. Qualified investors and experts seem to favor the company which is visible by brokerage recommendations for IPO and also from subscription numbers for QIB quota. QIB quota got subscribed more than 203 times and brokers have generally given subscribe rating for the IPO. Brokerages such as Nirmal Bang, Geojit Financial Services, SBICAP Securities and LKP Securities have given subscribe rating for the IPO.
The company is a fundamentally strong company as it is a major player in the NBFC segment that caters to SME businesses. The company provides secured MSME loans. SME segment is expcted to grow as government is also putting impetus on this sector so this bodes well for the company. Government has also tried to incorporate small business into formal sector by digitisation which made it easier for companies to become part of formal system. Due to digitization, it has also become easier for financial institutions to assess the credibility of borrowers belonging to lower end of spectrum.
Coming ahead, we have a strong IPO pipeline. On the mainboard, Pyramid Technoplast will open for bidding from 18-22 August. The company will raise Rs 153.05 crore from IPO. ON SME board 3 IPOs will be open for bidding in the next 2 days. Shoora Designs will be open for bidding from 17 – 21 August. Crop Life Science and Bondada Engineering will be open for bidding from 18-22 August.
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