SBFC Finance, non-deposit-taking NBFC, has refiled its draft red herring prospectus (DRHP) with Securities and Exchange Board of India to reducethe initial public offer (IPO) size to ₹1,200 crore from ₹1,600 crore.

While the fresh issue portion has been retained at ₹750 crore, the Offer for Sale (OFS) has been cut to ₹450 crorefrom the earlier proposed ₹850 crore when the company had originally filed the DRHP in November 2022.

The OFS comprises sale of shares worth up to ₹208 crore by Arpwood Partners Investment Advisors LLP, ₹51 crore by Arpwood Capital, ₹41crore by Eight45 Services LLP, and ₹150 crore by SBFC Holdings Pte. The offer also includes a reservation for subscription by eligible employees.

It had earlier proposed sale of shares to the tune of ₹398 crore by Arpwood Partners Investment Advisors, ₹275 crore by SBFC Holdings Pte Ltd, ₹98 crore by Arpwood Capital, and ₹79 crore by Eight45 Services LLP.

SBFC Finance may consider issuing equity shares on a private placement basis, aggregating up to ₹150 croreprior to the IPO, in which case the fresh issue size will be reduced, it said.

The proceeds from the fresh issuance worth ₹750 crore will be used towards augmentingits capital base to meet future capital requirements. As of December 2022, the capital adequacy ratio stood at 33.23per cent.

ICICI Securities, Axis Capital, and Kotak Mahindra Capital are the book-running lead managers and KFin Technologies Ltdis the registrar of the offer.