Article

Fedbank Financial Services Limited IPO: Know Before You Invest

date November,  2023
time 4 mins read

The Initial Public Offering (IPO) for Fedbank Financial Services is set to raise a total of Rs 1,100 crores. This will consist of a fresh issuance worth Rs 750 crores, alongside a sale of 7.03 crore existing shares. The subscription window for this IPO is scheduled to open on the 22nd of November, 2023, and close on the 24th of November, 2023. The finalization of share allocation is anticipated to occur by the 30th of November, 2023. Upon successful completion, Fedbank Financial Services plans to debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with an expected listing date set for the 5th of December, 2023. The pricing range for the IPO is ₹133 to ₹140 per share.

A consortium of underwriters, including ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited, and JM Financial Limited, has been appointed to manage the IPO proceedings. Link Intime India Pvt Ltd has been designated as the registrar for the offering.

Fedbank Financial Services Limited Product Portfolio

Fedbank Financial Services Limited is a distinguished provider of a spectrum of financial products, including Gold Loans, Home Loans, Loans Against Property (LAP), and Business Loan offerings.

This retail-centric NBFC distinguishes itself in Fiscal 2023, maintaining one of the most favourable borrowing costs among its peers in India’s micro, small, and medium enterprise (MSME) and gold loan sectors. Its clientele predominantly comprises MSMEs and a growing demographic of emerging self-employed individuals (ESEI).

Fedbank’s suite of financial solutions features a variety of mortgage loans, including home loans, small and medium-ticket LAPs, unsecured business loans, and gold loans. The company employs a hybrid ‘Phygital’ service delivery model, combining the efficiencies of digital technology with the personalized touch of physical customer service across all product lines.

As of the end of March 2023, the company’s operational reach extended through 575 branches located in 191 districts over 16 states and union territories in India. This includes a strong market presence in the Southern and Western regions, notably in Andhra Pradesh, Telangana, and Rajasthan.

Fedbank’s operations are supported by an experienced team and a commitment to leveraging technology, which collectively underpin a scalable and efficient business model.

The Objectives of Fedbank Financial Services Limited IPO

The organization plans to allocate the net gains from the public offering to enhance its Tier I capital. This strategic financial bolstering is aimed at supporting anticipated capital needs stemming from the expansion of the company’s operations and asset base. Additionally, a portion of these funds will be allocated to cover the expenses associated with the Offer.

 Financial Performance of Fedbank Financial Services Limited (In Crore)

Period Ended 31-Mar-23 31-Mar-22 31-Mar-21
Assets 9,070.99 6,555.71 5,466.31
Revenue 1,214.68 883.64 697.57
Profit After Tax 180.13 103.46 61.68
Net Worth 1,355.68 1,153.52 834.73
Reserves and Surplus 1,021.52 832 544.45
Total Borrowing 7,135.82 5,016.84 4,328.09

Important Dates for Fedbank Financial Services Limited IPO

IPO Date November 22, 2023 to November 24, 2023
Listing Date Tuesday, December 5, 2023
Face Value Rs 10 per share
Price ₹133 to ₹140 per share
Lot Size 107 Shares
Total Issue Size 78,073,810 shares (aggregating up to ₹1,092.26 Cr)
Fresh Issue 42,912,087 shares (aggregating up to ₹600.77 Cr)
Offer for Sale 70,323,408 shares of Rs 10
Issue Type Book Built Issue IPO
Listing At BSE, NSE

Fedbank Financial Services Limited IPO Reservation

Investor Category Shares Offered
QIB Shares Offered Not more than 50.00% of the Net offer
Retail Shares Offered Not less than 35.00% of the Offer
NII (HNI) Shares Offered Not less than 15.00% of the Offer

Fedbank Financial Services Limited IPO Lead Manager(s)

  • ICICI Securities Limited
  • Bnp Paribas
  • Equirus Capital Private Limited
  • Jm Financial Limited

Promoters of the Company

The promoters of the IPO are yet to be announced.

How to Apply for Fedbank Financial Services Limited IPO

Wait for the public issue to open for subscription, then click on this link to apply for the Fedbank Financial Services Limited IPO with Bigul https://ipo.bonanzaonline.com/.

How to Check the Allotment Status of Fedbank Financial Services Limited IPO

The registrar for Fedbank Financial Services Limited IPO is Link Intime India Private Ltd. To check your allotment status, please click on this link  https://linkintime.co.in/mipo/ipoallotment.html

FAQs

  1. What is the Fedbank Financial Services Limited IPO?

The Fedbank Financial Services Limited IPO is a public offering that seeks to raise Rs 1,100 crores. This includes a fresh issue of shares worth Rs 750 crores and an offer for sale of 7.03 crore shares.

  1. When will the Fedbank Financial Services Limited IPO open and close?

The IPO is scheduled to open on November 22, 2023, and close on November 24, 2023.

  1. What is the expected date for Fedbank Financial Services Limited’s IPO allotment and listing?

The allotment of shares is expected to be finalised by November 30, 2023, and the tentative listing date on BSE and NSE is December 5, 2023.

  1. Who are the lead managers for the Fedbank Financial Services Limited IPO?

The lead managers are ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited, and JM Financial Limited.

  1. How can I apply for the Fedbank Financial Services Limited IPO?

Wait for the public issue to open for subscription, then click on this link to apply for the Fedbank Financial Services Limited IPO with Bigul https://ipo.bonanzaonline.com/.

  1. How can I check the allotment status for the Fedbank Financial Services Limited IPO?

The Fedbank Financial Services Limited IPO registrar is Link Intime India Private Ltd. To check your allotment status, please click on this link  https://linkintime.co.in/mipo/ipoallotment.html

  1. What are the important dates for Fedbank Financial Services Limited IPO?

Keep in mind the IPO subscription dates, November 22 to 24, 2023, and the tentative listing date of December 5, 2023. The exact date for the price band announcement and lot size details will be disclosed closer to the opening date.

  1. Who can invest in the Fedbank Financial Services Limited IPO?

Retail individual investors, qualified institutional buyers, and non-institutional investors (high net-worth individuals) can invest, with a certain percentage of shares reserved for each category.

  1. What is the face value of Fedbank Financial Services Limited shares in the IPO?

The face value of the shares is set at Rs 10 per share.

 

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