SBFC Finance Shares Soar 60% Over the Issue Price.
SBFC Finance, a non-banking financial company (NBFC), has made an impressive entry into the stock market. The share price opened at ₹81.99 per share on the BSE, offering a substantial 44% listing premium to those who were allotted shares.
Current Share Price
Not stopping there, SBFC Finance’s shares continued to climb. They reached an intraday high of ₹93.26 on the BSE and ₹93.70 on the NSE, indicating strong investor interest.
Expert’s Say
Financial experts believe that SBFC Finance’s share price could rise even further, potentially reaching ₹105 per share. This has led those who were allotted shares to consider holding onto their investment to maximize their listing premium. However, caution is advised, and holding the stock with a stop loss at ₹80 per share is recommended.
For those willing to take on higher risks, stock analysts suggest buying at the current levels, targeting ₹105 per share. In this scenario, maintaining a stop loss at ₹87 per share is essential to manage potential losses.
SBFC Finance’s Initial Public Offering (IPO) received overwhelming demand, with an overall subscription of 74.06 times. Qualified institutional bidders showed a remarkable interest, subscribing 203.61 times, while non-institutional investors subscribed 51.82 times. Retail investors showed healthy interest as well, with a subscription of 11.60 times, and employees bid 6.21 times.
You can also read about SBFC Finance Shares Analysis.
Looking at SBFC Finance’s prospects, experts remain optimistic about the company’s medium to long-term potential. With experienced management, a strong HDFC background, and a dedicated in-house sales team, the company is well-positioned.
The lender’s strategic focus on diversifying its loan portfolio across states contributes to its positive credit profile and corporate governance. Investors who have been allotted shares are advised to hold on, considering the growing importance of NBFCs in the financial sector ecosystem.
Established in 2008, SBFC Finance specializes in providing secured loans to MSMEs (Micro, Small, and Medium Enterprises) and loans against gold. Their services cater to a wide range of individuals, including entrepreneurs, small business owners, self-employed individuals, and salaried workers. With an extensive network across multiple cities and states, SBFC Finance aims to serve those who have been underserved by traditional financial institutions.
As the company eyes significant growth potential, investors are encouraged to hold onto their shares with a stop loss of ₹74 and a target of ₹110-120 in the near future. With a strong nationwide presence and solid financials, SBFC Finance is poised for a promising journey ahead.
Disclaimer
The information provided above reflects the opinions of individual analysts and broking companies, and readers are advised to seek guidance from certified experts before making investment decisions.
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