“The IPO will be filed most likely next week and the issue will open later this fiscal after completing all regulatory formalities,” said a person aware of the issue. “The IPO will include a primary issuance of ₹750 crore and an offer for sale by existing investors of about ₹850 crore. With a monthly disbursement of ₹200 crore, the company is in constant need of capital and this will be a useful infusion into the company.”
Capital Co, and are the bankers to the issue.
SBFC is a micro and small enterprises-focused NBFC started by former
executive Aseem Dhru. Former Standard Chartered executive Neeraj Swaroop is the chairman of the board. Most of its loans are backed by property as collateral. At the end of September, its total loan book stood at about ₹4,000 crore, with an average ticket size between ₹10 lakh and ₹30 lakh. It expects to increase its loan book to ₹5,000 crore by the end of FY23.
“Dhru bought the erstwhile Karvy portfolio a few years ago and has been able to build it well. The company has been recording a growth of over 40% so needs capital, though its capital adequacy is more than 30%,” a second person familiar with the plans said.
Company secretary Jay Mistry did not respond to an email seeking comments.
SBFC has 135 branches across the country. At the end of the quarter ended June, the company had made a net profit of ₹32 crore. It had a net NPA ratio of 1.57% at the end of June. The IPO will give the option for Clermont and Arpwood to exit some of their holdings in the company. Clermont owns a 67% stake in the company while Arpwood Group owns close to 20%, with the rest controlled by management and employees.
