Friday, May 24

SBFC Finance Shares Surge 60% Above Issue Price: Hold or Take Profits?

SBFC Finance Shares Surge 60% Above Issue Price: Hold or Take Profits?

After SBFC Finance started trading on the stock market, a lot of people wanted to buy its shares, so the price went up by about 12% on the first day. This means the shares were being sold for Rs 91.50 on the BSE stock exchange.

On the first day that SBFC Finance started trading, more people decided to buy its shares because they were listed at a higher price than when they were first offered to the public. This listing happened on Wednesday and the shares were sold for Rs 82 on the National Stock Exchange and Rs 81.99 on BSE. This was much more than the original price of Rs 57 when they were first offered.

 

SBFC Finance share price extends gain after strong debut on Dalal Street
SBFC Finance share price extends gain after strong debut on Dalal Street

 

After SBFC Finance started being traded on the stock market, a lot of people wanted to buy its shares. This caused the price to go up by around 12% on Monday and reach Rs 91.50 on the BSE stock exchange. Then, even more people decided to buy the shares, which made the total increase in price go over 60% compared to the price when the shares were first offered to the public.

Experts have different opinions about what might happen with the company’s stock in the future. Some experts are saying that it might be a good idea for investors to sell their shares now and make a profit, especially because the overall market is changing a lot and can be uncertain.

On the other hand, a few experts believe that the stock could do well in the long term. They think the company has a lot of potential to grow and become even more successful.

SBFC Finance started trading on the stock market at a price of Rs 82, which is higher than the price of Rs 57 when its shares were first offered. This difference is called a premium, and it’s 44% higher. Even though this premium is a bit lower than what some experts expected, like Anubhuti Mishra, who is a person that studies the stock market, they say it happened because the overall market is changing a lot and can be uncertain.

SBFC Finance is a company that lends money but is not a bank (called a non-banking financial company or NBFC). It’s growing quickly and making a good amount of money, while also keeping its loans in good shape. However, there’s something to be careful about: the company can be affected by how much interest people need to pay and how the market is doing.

Because of these things, after starting on the market at a higher price, it might be smart for some people to sell their shares and make a profit. But if you’re a brave investor, you could choose to keep your shares for a long time.

Between August 3 and August 7, SBFC Finance offered its shares for sale at prices ranging from Rs 54 to Rs 57 each. During this time, people could buy these shares in groups of 260 shares or more. By doing this, the company collected around Rs 1,025 crore from selling a part of its ownership in the company.

Many people were interested in buying shares of SBFC Finance when they were offered for sale. In fact, the number of shares people wanted to buy was much more than what was available. Specifically, for big institutions that could buy a lot of shares (qualified institutional bidders), they wanted to buy over 203 times more shares than were available.

People who weren’t part of big institutions (non-institutional investors) wanted to buy almost 52 times more shares than were there. Regular folks who wanted to invest (retail investors) wanted to buy around 12 times more shares than were offered. Even the employees of the company were interested and wanted to buy more shares, about 6 times more.

We still feel positive about the company’s future, looking at it for the next few years. This is because we trust the people in charge of the company – they have a lot of knowledge, and they’ve worked with a big bank called HDFC before. They also have their own team that’s good at selling things. This is what Shreyansh Shah, who looks at companies and their stock performance, said at StoxBox.

The company that lends money is working on spreading out its loans to different places, and we feel good about how they evaluate people’s ability to repay loans and how they manage the company.

We suggest that people who got shares when they were offered should keep them because companies like this one have become more important in the financial world recently. The company’s chances to grow are still good. This is what the person said who looks at companies and their stock performance.

SBFC Finance was started as a company in 2008. It’s not a bank, but it lends money to people. They mainly give loans to small business owners, people who work for themselves, and regular workers.

They offer loans that are backed up by something valuable (secured MSME loans) and they also give loans using gold as a guarantee. The company has a lot of places across India where they work – they have 157 branches in 105 cities across 16 states and two territories.

The company believes it can grow a lot soon. We advise people who have shares to keep them, but if the price goes down to Rs 74, it might be a good idea to sell to avoid losing more money. If things go well, the price might reach Rs 110 to Rs 120 in the near future.

The company is in many places across India and is doing well financially. This is what Mahesh M. Ojha, who looks at how companies are doing and helps the company he works for, Hensex Securities, said.

SBFC Finance helps people who run small businesses and entrepreneurs that big banks might not help. They have many places across India – in fact, they’re in 466 different districts across 16 states and two territories. Right now, they have 152 branches where they work.

 

Read also: Adani Group: SEBI Appeals to Supreme Court for 15-Day Extension to Conclude Adani Group-Hindenburg Probe

Read Also: Arpwood Partners backed SBFC Finance refiles for IPO

 

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