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 name | Fedbank Financial Services Limited |
| Sector | Finance |
| Industry | Finance – NBFC |
| Company Website | https://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 date | 22 November 2023 |
| IPO Closing | 24 November 2023 |
| Basis of Allotment | 30 November 2023 |
| Initiation Refund | 01 December 2023 |
| Credit to Demat Account | 04 December 2023 |
| Listing Date | 05 December 2023 |
Fedbank Financial Services IPO details
| Issue type | Book 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 size | 107 Shares |
| Shareholding pre-issue | 322,477,605 |
| Shareholding post-issue | |
| Listing Exchange | BSE & NSE |
Fedbank Financial Services IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 107 | ₹14,980 |
| Retail (Max) | 13 | 1391 | ₹194,740 |
| S-HNI (Min) | 14 | 1,498 | ₹209,720 |
| S-HNI (Max) | 66 | 7,062 | ₹988,680 |
| B-HNI (Min) | 67 | 7,169 | ₹1,003,660 |
Fedbank Financial Services IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Fedbank Financial Services Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 658.11 | 821.89 | 1,110.17 |
| Expenses | 620.64 | 744.43 | 956.29 |
| Net income | 61.68 | 103.46 | 180.13 |
| Margin (%) | 9.37 | 12.59 | 16.23 |
Fedbank Financial Services Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 2.18 | 3.31 | 5.59 |
| PE ratio | – | – | – |
| RONW (%) | 7.39 | 8.97 | 13.29 |
| NAV | 28.79 | 35.88 | 42.11 |
| EBITDA (%) | 63.42 | 63.70 | 68.19 |
| Debt/Equity | – | – | – |
Company Promoters
- The Federal Bank Limited
Promoter Holding
| Pre Issue Share Holding | 98.77% |
| 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
LINK INTIME INDIA PRIVATE LIMITED
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
FEDBANK FINANCIAL SERVICES LIMITED
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
