SBFC Finance made a solid debut at bourses on Wednesday, as the stock was listed at Rs 82, a premium of 44 per cent, against its issue price of Rs 57 per share on the National Stock Exchange (NSE). The stock was listed at a premium of 44 per cent at Rs 81.99 per share on the BSE.
Ahead of listing, the stock was commanding a premium of Rs 30 per share, or about 53 per cent in the grey market.
The new age financial services company soon extended its listing gain and went on to hit intraday high of Rs 93.26 on the BSE and Rs 93.70 on the NSE.
According to analysts, SBFC Finance's share price may further rise and surge up to Rs 105 per share levels.
"SBFC stands out as a rapidly expanding non-banking financial company (NBFC) with robust earnings growth and stable asset quality. However, it bears the vulnerability of being sensitive to interest rates and market cycles, so in this market, after listing at such a premium, one should book profit, although aggressive investors may hold it for the long term," said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.
Vaibhav Kaushik, Research Analyst at GCL Broking, advised allottees to hold SBFC Finance shares further for the near term target of Rs 105. "However, one must maintain a strict stop loss at ₹80 per share levels while holding the stock for ₹105 target," he said.
On the back of a robust institutional response, the IPO of SBFC Finance was subscribed by a massive 70.16 times at close. Monday was the last day of bidding for investors.
The portion booked for qualified institutional buyers (QIBs) was subscribed by an overwhelming 192 times, the non-institutional investors (NIIs) quota was booked 49 times, and retail investors nearly 11 times.
The SBFC Finance IPO comprised a fresh equity issue of up to Rs 600 crore and an offer for sale (OFS) of up to Rs 425 crore, which was priced in the range of Rs 54–57 per share.
