Fedbank Financial Services IPO subscribed 38%

Published on Nov 22, 2023 17:07

The initial public offer (IPO) of Fedbank Financial Services received bids for 2,14,48,471 shares as against 5,59,23,660 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (22 November 2023). The issue was subscribed 0.38 times.

The issue opened for bidding on Tuesday (22 November 2023) and it will close on Friday (24 November 2023). The price band of the IPO is fixed at Rs 133-140 per share. An investor can bid for a minimum of 107 equity shares and in multiples thereof.

The initial public offer (IPO) consists of fresh issue to raise Rs 600 crore through issuance of 4.51 crore equity shares at the lower band of Rs 133 per share (face value Rs 10 per share) and 4.29 crore equity shares at the upper band of Rs 140 per share.

The issue also consists of Offer for Sale (OFS) of 3.52 crore equity shares to raise Rs 467.65-492.26 crore. The promoter - Federal Bank has offered 5,474,670 equity shares for sale through OFS and investor selling shareholder True North Fund VI LLP has offered 29,687,053 equity shares for sale.

The promoter shareholding in the company would decline to 62.4% post- IPO from 72.3% pre-IPO.

The company proposes to utilize the net proceeds from the fresh issue towards augmenting the capital base to meet future capital requirements, arising out of the growth of business and assets. The company expects to receive the benefits of listing the equity shares on the stock exchanges, including to enhance brand image among existing and potential customers and creation of a public market for the equity shares in India.

Ahead of the IPO, Fedbank Financial Services on Tuesday, 2023, raised Rs 323.4 crore from anchor investors. The board allotted 2.31 crore shares at Rs 140 each to 22 anchor investors.

Fedbank Financial Services (FedFina) is a retail focused non-banking finance company (NBFC) promoted by The Federal Bank. The company is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector. It has a well-tailored suite of products targeted to match customers needs, which includes mortgage loans such as housing loans, small ticket loan against property (LAP) and medium ticket LAP, unsecured business loans, and gold loans.

FedFina is present in 17 states and union territories across India with a strong presence in Southern and Western regions of India. It has covered 190 districts in 17 states and union territories in India through 584 branches

The company reported a net profit of Rs 53.87 crore and Total income of Rs 367.87 crore for the three months ended on 30 June 2023.