SBFC Finance IPO Allotment: Step-by-Step Guide to Check Your Application Status
SBFC Finance is all set for its IPO allotment today. The company’s ambitious debut in the financial services sector has garnered significant attention from investors. The response has been overwhelming, with an oversubscription of more than 74 times for the primary offering of Rs 1,025 crore. As the finalization of share allocation approaches on Thursday, here’s how investors can keep track of their application status. To check the allotment status, IPO participants can utilize the resources provided by both the Bombay Stock Exchange (BSE) website and Kfin Technologies Limited, the registrar for the IPO.
On the BSE website, by choosing Equity as the issue type and selecting the company name, applicants can input their application numbers and PAN card IDs to access their status. Alternatively, applicants can verify their allotment status through Kfin Technologies Limited’s online portal. Successful allottees can use their application number, Demat Account number, or PAN ID along with a captcha to access their status. For those who weren’t fortunate in the allotment process, refunds are anticipated to be initiated by Friday, August 11.
On the other hand, those who secure share allotments can expect to see their shares credited to their Demat accounts by Monday, August 14. The IPO listing is expected to take place on Wednesday, August 16. Turning to the details of the IPO, SBFC Finance offered its shares at a price range of Rs 54 to Rs 57 per share, with each lot comprising 260 shares. The bidding window was open from August 3 to August 7. The enthusiasm from various investor segments was palpable, as qualified institutional bidders oversubscribed by a staggering 203.61 times, non-institutional investors subscribed by 51.82 times, retail investors by 11.60 times, and employees by 6.21 times.
The Grey Market Premium (GMP) for SBFC Finance has remained consistent, standing at a premium of Rs 36 on the grey market, maintaining this level on Wednesday. These indicators suggest a potential listing at a 64 percent premium for the allocated investors. Founded in 2008, SBFC Finance specializes in secured MSME loans and loans against gold, catering primarily to entrepreneurs, small business owners, self-employed individuals, and salaried professionals.
The company’s extensive reach spans 157 branches across 105 cities in 16 states and two union territories, establishing a strong pan-India presence. Brokerage firms have expressed optimism about the IPO, citing SBFC Finance’s expansive nationwide presence, strong return ratios, effective business model, and competitive cost of funds as compelling reasons for investors to subscribe. However, they also highlight potential risks tied to elevated valuations and sensitivity to fluctuations in interest rates.