Fedbank Financial Services IPO: Successfully Raises Rs 324.68 Crore in Anchor Book

Fedbank Financial Services IPO Summary

Retail-focused NBFC Fed­bank Finan­cial Ser­vices secured Rs 324.68 crore from 22 investors in its anchor book on Novem­ber 21, pre­ced­ing its upcom­ing IPO. With a price band set at Rs 133–140 per share, the bid­ding for the IPO is sched­uled from Novem­ber 22 to Novem­ber 24. Notable par­tic­i­pants in the anchor book include Soci­ete Gen­erale, Gold­man Sachs, and domes­tic mutu­al funds like HDFC Mutu­al Fund. The Mum­bai-based NBFC aims to raise Rs 1,092.26 crore in its maid­en pub­lic issue, uti­liz­ing the pro­ceeds to strength­en its Tier – I cap­i­tal base. The IPO struc­ture includes a fresh issue of Rs 600 crore and an OFS of 3.5 crore equi­ty shares.

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Anchor Book Details

• 22 investors, includ­ing Soci­ete Gen­erale, Inte­grat­ed Core Strate­gies, and Mar­shall Wace Invest­ment Strate­gies, par­tic­i­pat­ed in the anchor book.
• Domes­tic mutu­al funds and insur­ance com­pa­nies like Nip­pon Life India, SBI Life Insur­ance, and HDFC Mutu­al Fund also invest­ed.
• Fed­bank allo­cat­ed 23,191,374 equi­ty shares to anchor investors at Rs 140 per share.

IPO Overview

• Fed­bank aims to raise Rs 1,092.26 crore through its IPO.
• The IPO includes a fresh issue of Rs 600 crore and an OFS of 3.5 crore equi­ty shares.
• Pro­mot­er Fed­er­al Bank and True North Fund VI LLP are the sell­ing share­hold­ers in the OFS.
• Net fresh issue pro­ceeds will be used to enhance Tier – I cap­i­tal base.

Segment-wise Allocation

• Rs 10 crore worth shares are reserved for Fed­bank employ­ees.
• Half of the net issue size is reserved for qual­i­fied insti­tu­tion­al buy­ers, 15 per­cent for high net worth indi­vid­u­als, and the remain­ing 35 per­cent for retail investors.

Business Focus

• Fed­bank Finan­cial Ser­vices focus­es on cater­ing to the MSMEs and emerg­ing self-employed indi­vid­u­als sec­tor.
• The NBFC has a wide­spread pres­ence, cov­er­ing 190 dis­tricts in 17 states and union ter­ri­to­ries through 584 branch­es.

Secondary Share Sale

• In a sec­ondary share sale from Novem­ber 18–20, Fed­bank Finan­cial Ser­vices raised Rs 330 crore from four investors.
• Pro­mot­er Fed­er­al Bank and True North Fund VI LLP sold 2.35 crore shares at Rs 140 per share to SBI Life Insur­ance, Star Union Dai-chi, Yasya Invest­ments, Nuva­ma Crossover III, and Nuva­ma Crossover IIIA.

Conclusion

Fed­bank Finan­cial Ser­vices’ suc­cess­ful anchor book fundrais­ing sets the stage for its IPO, empha­siz­ing strong investor inter­est. The NBFC’s strate­gic focus on MSMEs and self-employed indi­vid­u­als aligns with Indi­a’s eco­nom­ic land­scape. As the IPO unfolds, all eyes are on how Fed­bank will lever­age the funds raised to fur­ther its busi­ness objec­tives and con­tribute to the finan­cial sec­tor’s growth.