SBFC IPO Subscribed 7 X, Concord Opens With Staff Support

SBFC IPO Subscribed 7 X, Concord Opens With Staff Support

Singapore Govt Among Anchor Investors In Concord Biotech

Major broking houses recommend subscribe to both the issues.

MUMBAI: The Initial Public Offering (IPO) of Delhi-NCR-based SBFC Finance Ltd, was subscribed 7.09 times on the second day of bidding, while the public issue of Concord Biotech opened with solid employee participation.

The employee portion of Ahmedabad-based Concord Biotech was the most subscribed with 5.73 times, followed by Non-Institutional Investors Portion with 1.01 times. Retail was subscribed 0.72 times, whereas, Qualified Institutional Buyer Portion was subscribed 0.01 times.

The issue received bids of 85,05,680 shares against the offered 1,46,50,957 equity shares, at a price band of ₹705-741, according to the data available on the stock exchanges. 

Concord Biotech Ltd yesterday raised Rs 465 crore from anchor investors. Foreign Investors and Domestic Institutions who participated in the anchor were The Government of Singapore, Abu Dhabi Investment Authority, Government Pension Fund Global, Polar Capital Funds, HSBC Mutual Fund, WF Asian Reconnaissance Fund, Amundi Funds, The Prudential Assurance Company and Pinebridge Global Funds, Nippon Life, UTI Mutual Fund, DSP Mutual Fund, Franklin Mutual Fund, SBI Life Insurance, Motilal Oswal Mutual Fund, Edelweiss Trusteeship, Invesco India, Bandhan Mutual Fund, Aditya Birla Sun Life, Max Life Insurance and Tata AIA Life Insurance.

Concord Biotech is one of the leading global developers and manufacturers of select fermentation-based APIs across immunosuppressants and oncology in terms of market share, based on volume in 2022. It serves more than 70 countries, including regulated markets like the United States, Europe, Japan, and India. According to the Frost & Sullivan Report, the company holds a market share of over 20% by volume in 2022 for fermentation-based API products, including mupirocin, sirolimus, tacrolimus, mycophenolate sodium, and cyclosporine. Its substantial success can be attributed to its total installed fermentation capacity of 1,250 m3 as of March 31, 2023.

Broking houses like Motilal Oswal, LKP Research, Reliance Securities, Choice Broking, Hensex Securities, Hem Securities, and SMC Capital have given a “SUBSCRIBE” rating to the issue.

As regards SBFC Finance, its issue received bids of 94,61,07,760 shares against the offered 13,35,12,817 equity shares, at a price band of ₹54-57, according to the data available on the stock exchanges.

Non-Institutional Investors Portion was the most subscribed with a subscription of 12.95 times, followed by Qualified Institutional Buyer Portion with 6.71 times. Retail Portion was subscribed 4.93 times, whereas, Employee Portion was subscribed 2.44 times. The issue will close on Monday, August 7, 2023.

SBFC Finance is a prominent NBFC in India that concentrates on supporting Micro, Small, and Medium Enterprises (MSMEs). According to a CRISIL Report, the company has achieved exceptional growth in its assets under management (AUM), with a remarkable Compound Annual Growth Rate (CAGR) of 44% during the period from Fiscal 2019 to Fiscal 2023. Additionally, it has experienced a healthy disbursement growth, with a CAGR of 40% between Fiscal 2021 and Fiscal 2023. As of March 31, 2023, the average ticket size (ATS) for its various loan categories stood at ₹0.99 million for Secured MSME Loans, ₹0.09 million for Loans against Gold, and ₹0.69 million for other unsecured loans, based on disbursed amounts. The company's total Asset Under Management as of March 31, 2023, amounted to ₹4,942.82 crore, and it had provided loans to 1,02,722 customers by that date.

SBFC Finance primarily caters to customers in tier II and tier III cities, playing a crucial role in fostering entrepreneurship in these regions. It focuses on serving customers who have a strong credit history but may lack formal proof of income documents. By focusing on this niche, the company aims to address the funding needs of deserving individuals and businesses. As of March 31, 2023, SBFC Finance boasts an expansive footprint in 120 cities across 16 Indian states and two union territories, operating through a network of 152 branches. This widespread presence enables the company to reach a diverse customer base and provide financial assistance to those in need throughout the country.

Broking houses like HDFC Securities, SBI Securities, Nirmal Bang, Geojit Financial Services, BP Equities (StoxBox), Ventura Securities, Swastika Finance, Ashika Research, LKP Securites, Hensex Securities, and Marwardi Financial Services have given a “SUBSCRIBE” rating to the issue.

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