Fedbank Financial Services is set to raise ₹1,092 crore from its initial public offering (IPO). The IPO is open for subscription from November 22 to November 24, with a price band of ₹133-140 per equity share. Investors can bid for a minimum of 107 shares and in multiples thereafter.
The company plans to utilize the net proceeds from the fresh issue to augment its Tier-I capital base to meet future capital requirements and support the growth of its business and assets. The issue comprises a fresh issue aggregating up to ₹600 crore and an offer for sale by promoter Federal Bank, and selling shareholder of True North Fund VI LLP I.
ICICI Securities, BNP Paribas, Equirus Capital Private, and JM Financial are the book running lead managers to the Issue.
Fedbank Financial Services, a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank, operates 584 branches and is focused on MSME loans, gold loans, and more. As of March 31, 2023, it has the third-fastest assets under management (AUM) growth among NBFCs in India, with AUMs growing at a 33% CAGR between FY20 and FY23.
The company’s total revenues grew by 37% and 26% in FY23 and FY22, respectively, and its profit increased by 74% and 67% during the same periods. However, there are potential risks associated with its loan concentration, operational risks, and legal proceedings that investors should be aware of.
The company’s IPO is one of the latest in the market, along with other offerings like Tata Technologies and IREDA, showcasing a thriving IPO market in India.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
