Fedbank Financial Services Ltd IPO opens on November 22. Check IPO Details Issue Date Price

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Fedbank Financial Services Ltd IPO opens on November 22. Check IPO Details Issue Date Price

November 21, 2023
Fedbank Financial Services Ltd IPO opens on November 22. Check IPO Details Issue Date Price

Fedbank Financial Services Limited is coming out with a fresh public issue to raise Rs. 1092 crores from the market.

Below are the details of the Fedbank Financial Services Limited IPO:

  • Issue opens – November 22 (Wednesday)
  • Issue closes – November 24 (Friday)
  • Issue size – Rs. 1092 crores
  • Price band – Rs. 133 to Rs. 140 per equity share
  • Bid lot – 107 shares and in multiples thereof.

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And here are some details of the company and further details on the Fedbank Financial Services Limited IPO.

Company details:

  • Fedbank Financial Services Limited are a retail focused non-banking finance company (“NBFC”) promoted by The Federal Bank Limited. They have the second and third lowest cost of borrowing among the micro, small and medium enterprises (“MSMEs”), gold loan and MSME & gold loan peer set in India in Fiscal 2023 and three-months period ended June 30, 2023, respectively. (Source: CRISIL Report) As on March 31, 2023, they had the third fastest AUM growth among NBFCs in the peer set in India with a three year CAGR of 33% between Fiscals 2020 and 2023, and the fourth fastest year-on-year AUM growth of 42% for three-months period ended June 30, 2023. (Source: CRISIL Report) they are one among five private bank promoted NBFCs in India. (Source: CRISIL Report) they are the fastest growing gold loan NBFC in India among the peer set as of March 31, 2023, and had the fastest year on-year growth among gold loan NBFCs in India as of June 30, 2023. (Source: CRISIL Report) As on June 30, 2023, 86.24% of their total Loan Assets are secured against tangible assets, namely gold or customer’s property.
  • They are focused on catering to the MSMEs and the emerging self-employed individuals (“ESEIs”) sector. They have a well-tailored suite of products targeted to match their customers’ needs, which includes mortgage loans such as housing loans; small ticket loan against property (“LAP”); and medium ticket LAP, unsecured business loans, and gold loans. They had the third highest growth in disbursement among the peer set with a three year CAGR of 35% between Fiscals 2020 and 2023. (Source: CRISIL Report).
  • They have been rated “AA” by CARE for their non-convertible debentures (“NCDs”) since 2022, and “AA-”– by India Ratings and Research Private Limited for their NCDs and bank loans since 2018. They are promoted by Federal Bank, which, they believe, adds a degree of trust among their stakeholders. Federal Bank will continue to own more than 51% of their outstanding share capital post the completion of the Offer.
  • They are headquartered in Mumbai, Maharashtra. As of June 30, 2023, they are present in 17 states and union territories across India with a strong presence in Southern and Western regions of India. As of June 30, 2023, they covered 190 districts in 17 states and union territories in India through 584 branches. Their branches are located in states, such as Andhra Pradesh (including Telangana) and Rajasthan, which have better asset quality than other states as of Fiscal 2023. (Source: CRISIL Report) Additionally, they have dedicated micro-sites on their website for each of their branches, which focus solely on customer engagement for their branch customers.

Issue Size: Rs. 1092 crores

Employee Reservation: 7,69,230 Equity shares aggregating up to Rs.10/- crs.

Employee Discount: Rs.10/- per share

Issue break-up:

  • QIB – 50% of the net offer – Rs. 541 crores
  • NIB – 15% of the net offer – Rs. 162 crores
  • RET – 35% of the net offer – Rs. 379 crores

Listing: BSE and NSE

Registrar: Link Intime India Pvt Ltd

UPI: All Retail & NII bidders' (bids up to Rs. 5,00,000) applications through brokers are compulsorily in UPI Mode.

Note:

  • Application made using third party UPI or ASBA Bank A/c are liable to be rejected. 
  • The UPI Mandate acceptance time for Retail and NII Bidders (bids up to Rs. 5,00,000) shall expire at 5:00 PM on the closing day of the IPO i.e. Friday, November 24, 2023     

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