Fedbank IPO: Fedbank Financial Services Limited IPO Details

The Fedbank Financial Services Limited IPO is generating significant buzz in the financial market. This Initial Public Offering (IPO) is poised to raise Rs 1,092.26 crores, consisting of a fresh issue of Rs 600.00 crore and an offer for sale of 3.52 crore shares. In this blog, we’ll delve into the details of IPO, including its key features, objectives, financial information, and more.

Also See: Fedbank IPO GMP

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Fedbank IPO Details

IPO NameFedbank Financial Services IPO
IPO DateNovember 22, 2023, to November 24, 2023
Basis of AllotmentNovember 30, 2023
Listing DateDecember 5, 2023
Face Value₹10 per share
Price Band₹133 to ₹140 per share
Lot Size107 Shares
Total Issue Size₹1,092.26 Crores
Fresh Issue₹600.00 Crores
Offer for Sale35,161,723 shares of ₹10 each (aggregating up to ₹492.26 Crores)
Issue TypeBook Built Issue IPO
ListingBSE, NSE
Shareholding Pre-Issue322,477,605 shares

Fedbank IPO Reservation

  • 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

Also Read: Fedbank Financial Services IPO Opens on November 22, Price Band Set at ₹133-140 Apiece

Fedbank IPO Lot Size

Investors can bid for a minimum of 107 shares and in multiples thereof. The lot sizes and corresponding investments are as follows:

  • Retail (Min): 1 Lot (107 Shares) – ₹14,980
  • Retail (Max): 13 Lots (1391 Shares) – ₹194,740
  • S-HNI (Min): 14 Lots (1,498 Shares) – ₹209,720
  • S-HNI (Max): 66 Lots (7,062 Shares) – ₹988,680
  • B-HNI (Min): 67 Lots (7,169 Shares) – ₹1,003,660

Also See: Upcoming IPO in India

Fedbank IPO Objectives

The proceeds from the IPO will be used for:

  1. Augmenting the company’s Tier I capital base to meet future capital requirements stemming from business and asset growth.
  2. Covering offer expenses.

Fedbank Financial Performance

Fedbank Financial Services Limited has demonstrated impressive financial performance, with revenue surging by 37.46% and profit after tax (PAT) rising by 74.11% between March 31, 2022, and March 31, 2023. This growth underscores the company’s financial stability and potential for further expansion.

Period Ended31 Mar 202331 Mar 202231 Mar 2021
Assets9,070.996,555.715,466.31
Revenue1,214.68883.64697.57
Profit After Tax180.13103.4661.68
Net Worth1,355.681,153.52834.73
Reserves and Surplus1,021.52832.00544.45
Total Borrowing7,135.825,016.844,328.09
Amount in ₹ Crore
Financial Data Graphs

About Fedbank Financial Services Limited

Fedbank Financial Services Limited is a retail-focused non-banking finance company (NBFC) offering Gold Loans, Home Loans, Loan Against Property (LAP), and Business Loan Services. The company distinguishes itself by having the second-lowest cost of borrowing among MSMEs, gold loan, and MSME & gold loan peers in India in Fiscal 2023.

Fedbank primarily serves clients from the MSME and emerging self-employed individuals (ESEI) sectors. Their product range includes mortgage loans, unsecured business loans, and gold loans. The company employs a Phygital doorstep model, combining digital and physical initiatives to provide customized services to customers.

As of March 31, 2023, Fedbank Financial Services has a presence in 191 districts across 16 states and union territories in India through 575 branches, with a strong presence in Southern and Western regions of India, including Andhra Pradesh (including Telangana) and Rajasthan.

Fedbank Competitive Strengths

Fedbank Financial Services boasts several competitive strengths, including:

  1. Presence in large, underpenetrated markets with strong growth potential.
  2. Focus on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector.
  3. Strong underwriting capability and presence in select customer segments, coupled with robust risk management capabilities.
  4. An experienced, cycle-tested management team.
  5. A well-diversified funding profile with the advantage of a lower cost of funds and a technology-driven, scalable operating model.

Fedbank IPO Registrar

The registrar for Fedbank Financial Services IPO is Link Intime India Private Ltd. You can contact them at:

Fedbank Lead Managers

The lead managers for the IPO are:

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

Fedbank IPO Timeline

The IPO timeline is as follows:

  • IPO Opens: November 22, 2023
  • IPO Closes: November 24, 2023
  • Basis of Allotment: November 30, 2023
  • Initiation of Refunds: December 1, 2023
  • Credit of Shares to Demat: December 4, 2023
  • Listing Date: December 5, 2023
Fedbank IPO

Investors interested in participating in the Fedbank Financial Services IPO should carefully review the prospectus and consult with their financial advisors before making any investment decisions. This IPO presents an opportunity to invest in a growing NBFC with a strong track record and promising growth prospects.

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