SBFC Finance cuts IPO size by Rs.400 cr to Rs.1,200 cr

Mumbai: Non-banking lender SBFC Finance has lowered the size of its forthcoming IPO to Rs 1,200 crore from the earlier targeted Rs 1,600 crore by cutting short the size of the offer-for-sale (OFS).

In a filing to the Securities and Exchange Board, the city-based issuer said it is lowering the size of the initial public offering to Rs.1,200 crore from Rs.1,600 crore as planned earlier, by lowering the offer-for-sale (OFS) size to Rs.450 crore.

Accordingly, now the issue comprises fresh issuance of shares of Rs 750 crore and OFS of Rs 450 crore, it said without offering any reason for slashing the size.

The company filed preliminary IPO papers with Sebi last November.

The OFS now comprises up to Rs 207.75 crore by Arpwood Partners Investment Advisors, Rs 50.99 crore by Arpwood Capital, Rs 41.26 crore by Eight45 Services and Rs 150 crore by SBFC Holdings. The offer also includes a reservation for subscription by eligible employees, according to the revised DRHP.

The statement also said the company may consider a Rs.150 crore private placement in the run-up to the issue, which may further cut the OFS size.

The proceeds from the fresh issuance worth Rs.750 crore will be used towards augmenting its capital base, which as of December 2022 stood at 33.23 per cent, said the NBFC, which caters to entrepreneurs, small business owners, self-employed and salaried individuals.

SBFC Finance operates 137 branches across 105 cities in 18 states and has around 95,000 customers as of December 2022. It had Rs.525 crore in revenue in the first three quarters of the year, which was Rs.529 crore in fiscal 2022 and Rs.507 crore in FY21.

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