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.
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.
- 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.
- 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.
- 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.
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.