Fedbank Financial Services IPO News & Updates

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by mydhanush on 17 November 2023,  4 min read

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The initial public offering comprises a fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) of 3.5 crore equity shares worth Rs 492.26 crore at the upper price band by the selling shareholders.

Fedbank Financial Services, a subsidiary of The Federal Bank, which provides gold loans, home Loans, loan against property and business loan services is set to launch its public issue for subscription on November 22.

 

Issue Open & Closing Dates:

The Rs 1,092.26-crore public issue will close on November 24, while the anchor book, a part of QIB, will be opened for a day on November 21. 

 

Price Band:

The company has set a price band for the offer at Rs 133-140 per share.

The initial public offering comprises a fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) of 3.5 crore equity shares worth Rs 492.26 crore at the upper price band by the selling shareholders.

 

Who Will Sell?

Promoter, The Federal Bank, will be offloading 54.74 lakh shares in the OFS, and the rest of shares will be sold by investor True North Fund VI LLP, the private equity fund.

 

Reserved Portion of the IPO:

The firm has reserved Rs 10 crore worth shares in the IPO for its employees who will get these shares at a discount of Rs 10 per share to the final offer price.

The public issue excluding employees’ portion is the net issue. Half of the net offer size has been reserved for qualified institutional buyers, 15 percent for high networth individuals and the remaining 35 percent for retail investors.

 

Objective of IPO:

The Mumbai-based NBFC will utilise the net proceeds from the fresh issue for augmenting its Tier – I capital base to meet future capital requirements, arising out of the growth of the business and assets.

 

Bidding Details:

Investors can bid for a minimum 107 equity shares and in multiples of 107 shares thereafter. Hence, the retail investors can make a minimum investment of Rs 14,980 (107 shares) and their maximum investment will be Rs 1,94,740 (1,391 shares).

 

Merchant Bankers to the Issue:

The merchant bankers to the public issue are ICICI Securities, BNP Paribas, Equirus Capital, and JM Financial.

 

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

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