Fedbank Financial Services IPO Subscribed 2.20 Times On Final Day
The IPO was subscribed 2.20 times, as of 7 p.m. on Friday.
Fedbank Financial Services launched its initial public offering on Nov. 22. On its first day, the IPO was subscribed 38% and 0.90 times, or 90% on day two. The IPO was subscribed 2.20 times, as of 7:00 p.m on Friday.
The retail-focused NBFC, targeting MSMEs and emerging self-employed individuals, has fixed its IPO price in the range of Rs 133 to Rs 140 per equity share. The face value of the issue is Rs 10.
The share sale is a mix of a fresh issue of 4.29 crore shares, aggregating to Rs 600.7 crore, and an offer for the sale of 3.52 crore shares to the tune of Rs 492.26 crore.
Through OFS, the Federal Bank's overall holdings will come down to 61% from the current 73%, and True North's will come down to 8.5% from the current 25%.
The company intends to use the net proceeds from the fresh issue to augment Tier-I capital base to meet its future capital requirements arising out of the growth of business and assets.
ICICI Securities, Equirus Capital, IFL Securities, and JM Financial are managing the IPO.
The company raised Rs 330 crore from anchor investors via a pre-IPO placement on Monday. The pre-IPO placement comprises 23.5 lakh equity shares, according to an exchange filing.
SBI Life Insurance, Star Union Dai-chi, Yasya Investments, Nuvama Crossover III, and Nuvama Crossover IIIA are some of the key investors.
IPO Details
Offer Opens: Nov. 22.
Offer Closes: Nov. 24
Fresh Issue Size: Rs 600 crore shares.
OFS Size: 3.52 crore shares
Price Band: Rs 133–140 per share.
Lot Size: 107 shares.
Face Value: Rs 10 per share.
Listing: NSE, BSE.
Business Model
Fedbank Financial Service Ltd is a retail-focused NBFC, promoted by the Federal Bank Ltd.
Fedbank Financial Service has the second and third lowest cost of borrowing among MSMEs, gold loan and MSME & gold loan peer set in India in financial year 2023, and three-months period ended June 30, 2023, respectively, according to CRISIL.
The financial service is the one of the top five NBFCS promoted by private banks in India. Fedbank Financial witnessed a three year CAGR of 33% between FY2020 and FY2023, and the fourth fastest year-on-year asset under management growth of 42% for three-months period ended June 30, 2023, according to CRISIL.
Subscription Status: Day 3
The IPO was subscribed 2.20 times, as of 7 p.m. on Friday.
Institutional investors: 3.51 times
Non-institutional investors: 1.45 times
Retail investors: 1.82 times
Employee Reserved: 1.34 times