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Fedbank Financial Services IPO ends with 2.20x subscription
25-Nov-23   11:06 Hrs IST

The initial public offer (IPO) of Fedbank Financial Services received bids for 12,30,13,085 shares as against 5,59,23,660 shares on offer. The issue was subscribed 2.20 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 3.51 times. The Retail Individual Investors (RIIs) category was subscribed 1.82 times. The Non Institutional Investors (NIIs) category was subscribed 1.45 times.

The issue opened for bidding on 22 November 2023 and it closed on 24 November 2023. The price band of the IPO was fixed at Rs 133-140 per share.

The offer consisted of fresh issue of 4.51 crore equity shares and an offer for sale of 4.29 crore equity shares.

The issue also consisted 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 and promoter group shareholding 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 21 November 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.

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