Fedbank Financial Services IPO is a book built issue of Rs 1,092.26 crores. The issue comprises of fresh issue of Rs 600.00 crore and offer for sale of 3.52 crore shares.
Fedbank Financial Services IPO opens for subscription on November 22, 2023 and closes on November 24, 2023. The allotment for the Fedbank Financial Services IPO is expected to be finalized on Thursday, November 30, 2023. Fedbank Financial Services IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, December 5, 2023.
Fedbank Financial Services IPO price band is set at ₹133 to ₹140 per share. The minimum lot size for an application is 107 Shares. The minimum amount of investment required by retail investors is ₹14,980. The minimum lot size investment for sNII is 14 lots (1,498 shares), amounting to ₹209,720, and for bNII, it is 67 lots (7,169 shares), amounting to ₹1,003,660.
ICICI Securities Limited, Bnp Paribas, Equirus Capital Private Limited and Jm Financial Limited are the book running lead managers of the Fedbank Financial Services IPO, while Link Intime India Private Ltd is the registrar for the issue.
Refer to Fedbank Financial Services IPO DRHP for detailed information.
Fedbank Financial Services IPO Details
| IPO Date | November 22, 2023 to November 24, 2023 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹133 to ₹140 per share |
| Lot Size | 107 Shares |
| Total Issue Size | [.] shares (aggregating up to ₹1,092.26 Cr) |
| Fresh Issue | [.] shares (aggregating up to ₹600.00 Cr) |
| Offer for Sale | 35,161,723 shares of ₹10 (aggregating up to ₹492.26 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 322,477,605 |
Fedbank Financial Services IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| 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 |
Fedbank Financial Services IPO Timeline (Tentative Schedule)
Fedbank Financial Services IPO opens on November 22, 2023, and closes on November 24, 2023.
| IPO Open Date | Wednesday, November 22, 2023 |
| IPO Close Date | Friday, November 24, 2023 |
| Basis of Allotment | Thursday, November 30, 2023 |
| Initiation of Refunds | Friday, December 1, 2023 |
| Credit of Shares to Demat | Monday, December 4, 2023 |
| Listing Date | Tuesday, December 5, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 24, 2023 |
Fedbank Financial Services IPO Lot Size
Investors can bid for a minimum of 107 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| 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 |
| Lot Size Calculator |
Fedbank Financial Services IPO Promoter Holding
The Federal Bank Limited is the promoter of the company.
| Share Holding Pre Issue | 98.77% |
| Share Holding Post Issue |
About Fedbank Financial Services Limited
Fedbank Financial Services Limited provides Gold Loans, Home Loans, Loan Against Property (LAP) and Business Loan Services.
Fedbank is a retail-focused non-banking finance company (NBFC), with 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 Fiscal 2023. The company’s clientele comes mainly from the MSME and emerging self-employed individuals (ESEI) sectors.
The company’s product range includes mortgage loans such as housing loans; small ticket loans against property (LAP); and medium ticket LAP, unsecured business loans, and gold loans. The company also has a Phygital doorstep model, a combination of digital and physical initiatives, for providing customized services to customers across all the products.
As of March 31, 2023, Fedbank Financial Services has offices in 191 districts in 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.
Competitive Strengths:
- Presence in large, underpenetrated markets with strong growth potential.
- Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
- Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
- Experienced, cycle-tested management team.
- Well-diversified funding profile with the advantage of lower cost of funds – Technology-driven company with a scalable operating model
Fedbank Financial Services Limited Financial Information (Restated)
Fedbank Financial Services Limited’s revenue increased by 37.46% and profit after tax (PAT) rose by 74.11% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 9,070.99 | 6,555.71 | 5,466.31 |
| Revenue | 1,214.68 | 883.64 | 697.57 |
| Profit After Tax | 180.13 | 103.46 | 61.68 |
| Net Worth | 1,355.68 | 1,153.52 | 834.73 |
| Reserves and Surplus | 1,021.52 | 832.00 | 544.45 |
| Total Borrowing | 7,135.82 | 5,016.84 | 4,328.09 |
| Amount in ₹ Crore |
Key Performance Indicator
| KPI | Values |
|---|---|
| P/E (x) | 25.04 |
| EPS (Rs) | 5.6 |
| RoNW | 13.29% |
Check Fedbank Financial Services IPO Peer Comparison here.
Objects of the Issue (Fedbank Financial Services IPO Objectives)
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
- 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 Limited Contact Details
Fedbank Financial Services Limited
Kanakia Wall Street,
A Wing 5th Floor, Unit No. 511 Andheri Kurla Road,
Andheri (East) Mumbai 400 093
Phone: +91 22 6852 0601
Email: cs@fedfina.com
Website: https://www.fedfina.com/
Fedbank Financial Services IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: fedbankfinancialservices.ipo@linkintime.co.in
Website: https://linkintime.co.in/mipo/ipoallotment.html