The shares of the financial service provider gained up to 2.2 percent after SBI Mutual Fund, Morgan Stanley Asia Singapore Pte and others bought 3.75 crore equity shares valued at Rs 330.49 crore.
With a market capitalization of Rs 9,604.74 crore, the shares of SBFC Finance Ltd were trading at Rs 89.00 apiece, increasing around 1.75 percent as compared to the previous closing of Rs 87.47 per share.
As of March 2024, the business’s promoters, Arpwood Partners Investment Advisors LLP and Arpwood Capital Pvt Ltd, held 1.10 crore and 4.51 crore equity shares, representing 1.03 percent and 4.20 percent of the company, respectively. However, the promoter sold the entire 5.23 percent shares for Rs 494.42 crore.
Additionally, SBI Mutual Fund, Custody Bank of Japan Ltd., RE RB Amundi India SMall Cap Equity Mother Fund, and Morgan Stanley Asia Singapore Pte bought 3.75 crore equity shares, equivalent to 3.49 percent in the company, at an average price of Rs 88 per share, valued at Rs 330.49 crore.
Looking into SBFC Finance Ltd’s performance, revenue increased by 34 percent from Rs 208 crore in Q4FY23 to Rs 279 Crore in Q4FY24. 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 major NBFCs, concentrating on micro, small, and medium-sized enterprises. The firm has 152 sites in India, serving 120 cities throughout 16 states and two union territories.
SBFC Finance primarily serves consumers in tier 2 and tier 3 locations across the country. The firm focuses on small and medium-sized debtors earning up to Rs 1.5 lakh per month. It reaches out to them through its 1,911 sales people.
As of March 31, 2023, non-cash EMI collections accounted for about 89.49% of secured MSME loan collections and 90.92% of unsecured loans. This decreased cash management risk and provided consumers with real-time payment receipts.
SBFC Finance Limited offers secured loans to micro-small and medium-sized businesses (MSMEs) and loans against gold. The bulk of consumers are entrepreneurs, small company owners, self-employed persons, paid employees, and working-class people. It has created a PhyGital model.
Written by:- Abhishek Singh
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