SBFC Finance IPO lists at 43.86% premium, rallies further

SBFC Finance Ltd had a very robust listing on 16th August 2023, listing at a smart premium of 43.86%, and rallying further from the listing price. While the closing price on 16th August 2023 was still below the high price of the day, the rally was quite sharp after the tepid listing and represented a good spike from the opening price. In a sense the stock opened strong and also rallied sharply higher during the day and also closed at a substantial premium to the listing price. What is more interesting is the fact that the strong listing performance by SBFC Finance Ltd was also helped by the stock market performance on 16th August 2023. For the day, the Nifty closed 31 points higher while the Sensex closed a full 138 points higher. Both the Nifty and the Sensex bounced sharply in the last couple of hours.

This led to the stock picking up momentum during the day, despite markets being negative in early trades. The stock had seen strong subscription in the IPO. The subscription was 74.06X  overall and QIB subscription at 203.61X. Hence the listing was expected to be extremely strong. However, while the listing was strong, the performance strength got reinforced during the trading day. However, it must be said that the sharp rally in the market during the day led to the stock also picking up momentum after listing at a very robust premium. Here is the SBFC Finance Ltd listing story on 16th August 2023.

SBFC Finance IPO subscription and pricing details

SBFC Finance IPO price was fixed at the upper end of the band at ₹57 which was anyways along expected lines considering the extremely strong 74.06X overall subscription and the 203.61X QIB subscription in the IPO. In addition, the retail portion had got subscribed 11.60X in the IPO while the HNI / NII portion also got a healthy subscription of 51.82X. The price band for the IPO was ₹54 to ₹57. On 16th August 2023, the stock of SBFC Finance Ltd listed on the NSE at a price of ₹82, a very strong premium of just 43.86% over the IPO issue price of ₹57. On the BSE also, the stock listed at ₹81.99, a premium of just 43.84% over the IPO issue price of ₹57 per share.

How the stock of SBFC Finance Ltd closed on both exchanges

On the NSE, SBFC Finance Ltd closed on 16th August 2023 at a price of ₹92.65. That is a first day closing premium of 62.54% on the issue price of ₹57 and also a premium of 12.99% on the listing price of ₹82. In fact, the listing price turned out to be the low price of the day and the stock traded for the entire trading day above the opening listing price. On the BSE, the stock closed at ₹92.21. That represents a first day closing premium of 61.77% above the IPO issue price and also a premium of 12.46% above the listing price on the BSE. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 after rallying much higher. In fact, the opening price turned out to be the low price of the day on both the exchanges. The high price of the day was just slightly above the closing price on both the exchanges, which could be attributed to some late profit taking in the counter. Clearly, the strong performance of the markets also had its impact on the stock on 16th August 2023 allowing the stock to close the day well above the issue price for the day. In short, the late bounce in the market allowed the stock to sustain its morning gains, and not only sustain the gains on listing, but also close well above the listing price.

Price volume story on the NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 16th August 2023. On Day-1 of listing, SBFC Finance Ltd touched a high of ₹95.45 on the NSE and a low of ₹82. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the high price of the day. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was just a tad below the high price due to some late selling on the stock. The strong post-listing performance of the IPO stock was supported by robust markets with the Nifty gaining sharply during the day. On Day-1 of listing, the SBFC Finance Ltd stock traded a total of 2,044.17 lakh shares on NSE amounting to value of ₹1,818.29 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers. The stock closed the day with pending buy orders of 1,61,170 shares on the NSE. The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Price volume story on the BSE

Let us not turn to how the stock traversed on the Bombay Stock Exchange (BSE) on 16th August 2023. On Day-1 of listing, SBFC Finance Ltd touched a high of ₹95.30 on the NSE and a low of ₹81.99. The premium to the listing price sustained through the day, although the stock did not manage to hold on to the high price of the day and closed a tad lower. Mainboard IPOs do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was just a shade below the high price due to some late selling on the stock, which is quite normal. The strong post-listing performance of the IPO stock was supported by robust markets with the Nifty gaining sharply during the day. On Day-1 of listing, the SBFC Finance Ltd stock traded a total of 109.19 lakh shares on BSE amounting to value of ₹96.92 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly favouring of the buyers.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of the trading session on the first day of trading. The sharp bounce in the Nifty and the Sensex from lower levels also helped the stock to stay robust. That makes it a rather attractive stock after the strong listing on Wednesday. On the NSE, out of the total 2,044.17 lakh shares traded during the first day of trading, the deliverable quantity represented 964.93 lakh shares or a deliverable percentage of 47.20% on the NSE, which is around the routine listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 109.19 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 65.89 lakh shares representing total deliverable percentage of 60.34%, well above the delivery action on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, SBFC Finance Ltd had a market capitalization of ₹9,813.09 crore with free-float market cap of ₹1,570.09 crore. SBFC Finance Ltd has issued capital of 106.42 crore shares with a par value of ₹10 per share.