Fedbank Financial Services IPO – FedFina IPO

Fedbank Financial Services IPO will open for subscription from 22 November 2023. The company aims for an issue size of ₹1,092.26 Cr through this IPO.

Company Overview

Full nameFedbank Financial Services Limited
IndustryFinance – NBFC
Company Websitehttps://www.fedfina.com/

About Company

Fedbank Financial Services (FedFina) is a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank Limited. It has the second lowest cost of borrowing among the micro, small, and medium enterprises (MSMEs), gold loan, and MSME & gold loan peer set in India in FY 2023. As of 31 March 2023, FedFina had the third fastest AUM growth among NBFCs in the peer set in India with a three-year CAGR of 33% between FY 2020 and 2023, and 85.98% of the total Loan Assets are secured against tangible assets, namely gold or customer’s property.

FedFina is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector. The ESEI and MSME segment is largely unaddressed by lending institutions in India. FedFina had the third highest growth in disbursement among the peer set with a three-year CAGR of 35% between FY 2020 and 2023. Its mortgage loans, gold loans, and unsecured business loans had an AUM of INR 4,506.38 crore, INR 2,986.03 crore, and INR 1,454.28 crore, respectively as of 31 March 2023.

As of 31 March 2023, Fedbank Financial Services was present in 16 states and union territories across India with a strong presence in Southern and Western regions of India, covering 191 districts in 16 states and union territories in India through 575 branches. The branches are located in states, such as Andhra Pradesh (including Telangana) and Rajasthan, which have better asset quality than other states as of FY 2023.

The Objectives of the Issue

  • Augmenting the company’s Tier I capital base to meet the company’s future capital requirements, arising from the growth of the business and assets.
  • Meeting offer expenses.

Fedbank Financial Services IPO Timetable

IPO Opening date22 November 2023
IPO Closing24 November 2023
Basis of Allotment30 November 2023
Initiation Refund01 December 2023
Credit to Demat Account04 December 2023
Listing Date05 December 2023
(Cut-off time for UPI mandate confirmation – 5 PM on November 24, 2023)

Fedbank Financial Services IPO details

Issue typeBook Built Issue IPO
IPO issue size₹1,092.26 Cr Cr
Fresh Issue₹600 Cr
Offer for sale₹492.26 Cr – 35,161,723 shares
Face value₹10 per share
Price Band ₹133 to ₹140 per share
Lot size107 Shares
Shareholding pre-issue322,477,605
Shareholding post-issue
Listing ExchangeBSE & NSE

Fedbank Financial Services IPO Lot Size

Retail (Min)1107₹14,980
Retail (Max)131391₹194,740
S-HNI (Min)141,498₹209,720
S-HNI (Max)667,062₹988,680
B-HNI (Min)677,169₹1,003,660

Fedbank Financial Services IPO Reservation Details

QIB Shares Offered50%
NII (HNI) Shares Offered15%
Retail Shares Offered35%

Fedbank Financial Services Financial Performance

 FY 2021FY 2022FY 2023
Net income61.68103.46180.13
Margin (%)9.3712.5916.23
(Amount in ₹ Crores)

Fedbank Financial Services Valuations & Margins

FY 2021FY 2022FY 2023
PE ratio
RONW (%)7.398.9713.29
EBITDA (%)63.4263.7068.19

Company Promoters

  • The Federal Bank Limited

Promoter Holding

Pre Issue Share Holding98.77%
Post Issue Share Holding

Fedbank Financial Services IPO Lead Manager(s)

  • ICICI Securities Limited
  • BNP Paribas
  • Equirus Capital Private Limited
  • JM Financial Limited

Fedbank Financial Services Registrar

C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 810 811 4949
Email: fedbankfinancialservices.ipo@linkintime.co.in
Website: www.linkintime.co.in

Fedbank Financial Services Contact Details

Kanakia Wall Street, A Wing, 5th Floor, Unit No. 511,
Andheri Kurla Road, Andheri (East), Mumbai 400 093, Maharashtra
Phone: +91 22 6852 0601
Email: cs@fedfina.com
Website: www.fedfina.com

Fedbank Financial Services IPO Allotment Status

FedFina IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.

Final thoughts

Fedbank Financial Services IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.

Happy Investing

Leave a Comment

Your email address will not be published. Required fields are marked *