The initial public offering (IPO) of Fedbank Financial Services will open for subscription on November 22. The issue closes on November 24. The company’s shares are expected to get listed on both the exchanges. Here are 10 things to know about the offer.
- What is the business overview of Fedbank Financial?
Fedbank Financial is among the five private bank-promoted NBFCs in India. It focuses on catering to the MSMEs and the emerging self-employed individuals sector.
- What is the industry overview of Fedbank Financial?
Housing finance and gold loans cover 46% and 12% of the retail loans industry, respectively, in fiscal 2023. As of March 2023, Crisil MI&A estimates the outstanding value of loans given out by organised financiers’ – banks and non banking financial companies – to be Rs 6.1 trillion, with non-banking financial companies accounting for one-quarter of the market.
- What is the size of Fedbank Financial IPO?
The IPO comprises fresh equity issue worth Rs 600 crore along with an offer for sale (OFS) of 3.51 crore equity shares.
- Who are the selling shareholders under OFS?
Under the OFS, parent Federal Bank will offload 54.7 lakh shares and True North Fund VI LLP will sell 2.96 crore shares.
- What is the price band for Fedbank Financial IPO?
The price band of this public issue is fixed at Rs 133-140, and at the upper end, the company plans to raise Rs 1,092 crore.
- What is the structure of Fedbank Financial IPO?
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.
- How is the financial performance of Fedbank Financial?
As of March 2023, the company boasts of third fastest AUM growth among NBFCs in India with a three year CAGR of 33% between FY20-23. Nearly 86% of the total loan assets are secured against tangible assets, namely gold or customer’s property.Its revenue from operations rose 46% year-on-year to Rs 361 crore in the three months ended June period, while profit jumped 23% year-on-year to Rs 53.8 crore.
- What are the objects of Fedbank Financial IPO?
Net proceeds from the fresh issue will be utilised towards augmenting Tier–I capital base to meet its future capital requirements, arising out of the growth of business and assets. A part of the proceeds will also be used for meeting offer expenses.
- What is the current GMP of Fedbank Financial?
According to market analysts, the current GMP of Fedbank Financial is Rs 5 in the unlisted market.
- Who are the book running lead managers for Fedbank Financial IPO?
ICICI Securities, BNP Paribas, Equirus Capital, and JM Financial are acting as the book running lead managers to the issue.