The shares of the financial service provider fell up to 4 percent after the company’s promoter sold 6 crore shares, representing a 5.6 percent worth Rs 536.50 crore.
With a market capitalization of Rs 9,528.50 crore, the shares of SBFC Finance Ltd were trading at Rs 88.70 per share, increasing around 3.10 percent as compared to the previous closing price of Rs 91.54 apiece.
As of March 2024, the promoter holds 65.13 crore equity shares equivalent to 60.66 percent of the company, however, the company’s promoter sold 6 crore shares, representing 5.6 percent of the company, SBFC Finance, aiming to earn Rs 536.50 crore from the transaction, Moneycontrol reported.
Looking into SBFC Finance Ltd’s performance, revenue increased by 34 percent from Rs 208 crore in Q3FY23 to Rs 279 Crore in Q3FY24. During the same time frame, net profit increased by 69 percent from Rs 43 crore to Rs 73 crore.
SBFC is one of India’s leading NBFCs, focusing on micro, small, and medium-sized businesses. The company operates 152 locations in India, covering 120 cities throughout 16 states and two union territories.
SBFC Finance primarily serves customers in tier II and tier III cities around the country. The organization targets small and medium-sized debtors earning up to Rs 1.5 lakh per month. It reaches out to them through its 1,911-person sales staff.
The company has a strong on-the-ground collection infrastructure that is technologically driven. As of March 31, 2023, non-cash EMI collections made up around 89.49% of secured MSME loan collections and 90.92% of unsecured loan collections. This reduced cash management risk and enabled consumers to receive real-time payment receipts.
SBFC Finance Limited provides secured loans for micro-small and medium-sized companies (MSME) and loans against gold. The majority of consumers are entrepreneurs, small business owners, self-employed individuals, salaried, and working-class folks. It has developed a PhyGital model.
Written by:- Abhishek Singh
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