Fedbank Financial Services is into Financial Services-NBFC and is looking raise funds through Fresh Issue and Offer for Sale
Fedbank Financial Services IPO is a public offering of shares by The Federal Bank Limited. The IPO will open on November 22 and will close on November 24. The price band is ₹133 to ₹140 per share and the lot size is 107 shares. The issue size is ₹1,092.26 crore. The shares are expected to be listed on NSE, BSE on December 05 (^). Some additional information that you may find useful are: : (**) - based on higher price band (^) indicative date
Promoters of the company are The Federal Bank Limited Currently promoters hold 72.28% stake in the company.
Quick Pointers
- Company aims to raise between Rs 1,068 to 1,092 crs through this IPO.
- The net proceeds of the issue will be utilized to For augmentation of our Company’s Tier –I capital base to meet Company’s future capital requirements. and Proposes to utilize the Net Proceeds of the Fresh Issue to maintain the minimum capital adequacy ratio and to meet future capital requirements arising out of the growth in business and not for any specified projects.
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 21-Nov-23.
- Price band for the IPO has been fixed at Rs 133 to 140 per share and bid lot are in multiple of 107 shares. The implied market cap post-issue at Rs 4,937 to 5,165 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on November 30 and share are expected to be listed on NSE, BSE on December 05.
- Company has direct competition in the NBFC space with listed peers like Five Star Business Finance, Aptus Value Housing Finance, Muthoot Finance, Manappuram Finance and IIFL Finance.
- ICICI Securities, BNP Paribas, Equirus Capital, JM Financial has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.
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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.
Gross NPA was 2.26%, 2.05%, 2.03%, 2.23% and 1.01% for the three-months periodended June 30, 2023 and June 30, 2022, and Fiscals 2023, 2022 and 2021, respectively, and Net NPA was 1.76%, 1.57%, 1.59%, 1.75% and 0.71% for the three-months periodended June 30, 2023 and June 30, 2022, and Fiscals 2023, 2022 and 2021, respectively.
About Industry
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.
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