Fedbank Financial Services (Fedfina) files DRHP with SEBI for the proposed IPO; Key Details here

Fedbank Financial Services is into Financial Services NBFC and is looking raise funds through Fresh Issue and Offer for Sale

Fedbank Financial Services to raise Fresh Issue aggregating up to Rs 750 crores and an Offer for Sale up to 70,323,408 Equity Shares through public issue IPO

Fedbank Financial Services IPO: Fedbank Financial Services Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 750 crores and an Offer for Sale up to 70,323,408 Equity Shares. ICICI Securities, BNP Paribas, Equirus Capital, JM Financial have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO: As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 750 Crs and offer-for-sale (OFS) of up to 70323408 equity shares by The Federal Bank Limited (pre-offer shareholding at 73.09%) and True North Fund VI LLP (pre-offer shareholding at 25.68%) who will offload up to 16,497,973 equity shares and up to 53,825,435 equity shares respectively. .

About Company:
Fedbank Financial Services (Fedfina) established in 1995. Company is a retail focused NBFC promoted by The Federal Bank Limited. As per CRISIL, company has the second lowest cost of borrowing among the MSME, gold loan peer set in India in FY23. It has AUM CAGR of 33% during FY20-23. As on FY23, 85.98% of total Loan Assets are secured against tangible assets, namely gold or customer’s property.

About Industry:
Housing finance and gold loans cover 46% and 12% of the retail loans industry, respectively, in India in Fiscal 2023. As of March 2023, CRISIL MI&A estimates the outstanding value of loans given out by organised financiers’ –banks and NBFCs –to be ₹ 6.1 trillion, with NBFCs accounting for one-quarter of the market.

Source: SEBI, BSE, NSE, DRHP, Company, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.