August 16th 2023.
Shares of non-banking finance company SBFC Finance Ltd made a remarkable stock market debut on Wednesday, beginning the trade with a premium of nearly 44 per cent, against the issue price of Rs 57. The stock was listed at Rs 81.99 on the BSE and Rs 82 on the NSE, recording an impressive 43.84 per cent and 43.85 per cent jump respectively from the issue price. The company commanded a market valuation of Rs 9,560.87 crore in morning trade.
The Initial Public Offer of SBFC Finance was opened on August 22 and got subscribed 75.80 times on the last day of subscription on August 7. The Rs 1,025 crore-initial share sale had a price range of Rs 54-57 a share. On the second day of subscription, it was oversubscribed by 7.09 times.
The company will utilise the net proceeds from the issue towards augmenting its capital base to meet its future capital requirements that may arise from the growth of its business and assets. This shows that the company is confident about its future prospects and investors seem to agree with it.
On the stock market debut, the SBFC Finance Ltd shares have already made a remarkable jump and the company's market valuation has increased significantly. It will be interesting to see how the stock performs in the future.
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