Fedbank IPO GMP: Fedbank Financial Services IPO GMP Movement

The stock market is buzzing with excitement as Fedbank Financial Services Limited gears up to launch its mainline Initial Public Offering (IPO) on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This IPO comprises a new issue worth Rs 750.00 Crores and an Offer for Sale (OFS) worth Rs 350.00 Crores. Investors can participate in this IPO from November 22 to 24, 2023, with a minimum lot size requirement of 107 shares or multiples thereof, within the price band of Rs 133 to Rs 140 per share. In this blog, we will delve into the Grey Market Premium (GMP) of the Fedbank Financial Services IPO and explore key details about the company.

Also Read: Upcoming IPO in India

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Fedbank IPO GMP

The Grey Market Premium (GMP) reflects the price at which an IPO is traded in an unofficial and unregulated grey market before its official listing. It provides insights into how the IPO might perform on its listing day. As of November 30, 2023, the Fedbank Financial Services IPO GMP stands at ₹–, indicating a positive trend. With a price band of ₹140.00, the estimated listing price is ₹140, which suggests an expected percentage gain of 0.0% per share.

Here’s a table summarizing the recent GMP movement: [Last Updated: 30 Nov, 2023; 09:05]

GMP DateIPO PriceGMPSub2 Sauda RateEstimated Listing Price
30-11-2023₹140.00₹–₹140 (0.0%)
29-11-2023₹140.00₹–₹140 (0.0%)
28-11-2023₹140.00₹–₹140 (0.0%)
27-11-2023₹140.00₹–₹140 (0.0%)
26-11-2023₹140.00₹–₹140 (0.0%)
25-11-2023₹140.00₹2200/2800₹142 (1.43%)
24-11-2023₹140.00₹2200/2800₹142 (1.43%)
23-11-2023₹140.00₹2200/2800₹142 (1.43%)
22-11-2023₹140.00₹5400/5600₹145 (3.57%)
21-11-2023₹140.00₹5400/5600₹145 (3.57%)
20-11-2023₹140.00₹5400/5600₹145 (3.57%)
19-11-2023₹140.00₹8700/9800₹148 (5.71%)
18-11-2023₹140.00₹8700/9800₹148 (5.71%)
17-11-2023₹140.00₹10800/11200₹150 (7.14%)
16-11-2023₹0₹ (0%)
15-11-2023₹0₹ (0%)

It’s important to note that IPO GMP can be highly volatile, and making investment decisions solely based on GMP can be risky. Potential investors should consider all factors before deciding whether to invest in the Fedbank Financial Services IPO.

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

About Fedbank Financial Services:

Fedbank Financial Services Limited was established in 1995 and is a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank Limited. The company boasts one of the lowest costs of credit among Micro, Small, and Medium Enterprises (MSMEs), Gilt Loans, and MSME and Gilt Loans in India for the fiscal year 2023. Fedbank Financial Services primarily serves MSMEs and Emerging Self-Employed Individuals (ESEIs). The company offers a well-tailored product range, including mortgage loans such as home loans, small-amount “LAP” loans, medium-amount LAP loans, unsecured business loans, and gold loans.

Fedbank Financial Services implements a ‘Phygital’ doorstep model, combining digital and physical initiatives to provide customized services to customers across its product offerings. This approach allows them to maintain constant customer engagement. Technology plays a pivotal role in their underwriting model, incorporating electronic data, physical information, and document collection. In 2020, the company entered into a five-year contract with a service provider for file management, document storage, and related services.

The company’s strong credit ratings include ‘AA’ by CARE for its non-convertible debentures since 2022 and ‘AA-‘ by India Ratings and Research Private Limited for its NCDs and bank loans since 2018. Fedbank Financial Services is backed by The Federal Bank, ensuring a high level of confidence among stakeholders. Post the IPO, The Federal Bank will continue to own more than 51% of the outstanding share capital. The company attributes its competitive position in the market to its long operating history, management expertise, and the trusted “Federal Bank” brand.

Also Read : Tata Technologies IPO GMP

Strengths of Fedbank Financial Services IPO:

  • Presence in large, less-penetrated markets with strong growth potential.
  • Focus on retail lending products targeting individuals and the emerging MSME sector.
  • Strong underwriting capabilities and robust risk management.
  • Experienced management team.
  • Well-diversified funding profile with a lower cost of capital.
  • Technology-driven scalable operating model.

Fedbank IPO Timeline:

  • IPO Open Date: November 22, 2023
  • IPO Close Date: November 24, 2023
  • Basis of Allotment Finalization Date: November 30, 2023
  • Refunds Initiation: December 01, 2023
  • Credit of Shares to Demat Account: December 04, 2023
  • IPO Listing Date: December 05, 2023
Fedbank IPO

Conclusion:

The Fedbank Financial Services IPO is generating significant interest in the market, with a positive Grey Market Premium indicating investor optimism. However, it’s crucial for investors to conduct thorough due diligence, considering various factors beyond GMP, before making investment decisions. Fedbank Financial Services, with its strong presence in the financial sector and solid fundamentals, seems poised for an exciting journey ahead in the world of IPOs.

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