Fedbank Financial Services IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 30, 2023Fedbank Financial Services Limited, a substantial subsidiary of Federal Bank, is making preparations to raise funds from the public through the IPO Route.
Fedbank Financial Services IPO comprises a Fresh Issue of Equity Shares and an Offer for Sale. Through the OFS, the promoter of the company and an existing shareholder will be offloading their shares.
Fedbank Financial Services IPO Review will cover and comprehend all the aspects of this IPO. We will be discussing the objects of the IPO, its date, size and price, IPO GMP, and related aspects of the company.
| Face Value | Rs 10 |
| Price Band | Rs 133 to Rs 140 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 107 Shares |
| Listing Date | December 5, 2023 |
| Offer for Sale | Rs 492.26 Crore |
| Fresh Issue | Rs 600.00 Crore |
| IPO Size | Rs 1,092.26 Crore |
| Tick Size | 1 |
Fedbank Financial Services IPO Overview
Fedbank Financial Services IPO is an issue consisting of a fresh issue of shares aggregating up to Rs 600.00 crore, accompanied by an offer for sale of up to 4,57,14,286 equity shares by the company’s promoter.
The Federal Bank Limited, and an investor of the company, True North Fund VI LLP. Post the IPO; Federal Bank Limited will continue to hold the majority of shares of the company.
Prior to the filing of RHP with RoC, the company may consider undertaking a private placement of up to Rs. 180 crore. If the pre-IPO placement is completed, the issue size will be reduced to the extent of such pre-IPO placement.
Fedbank Financial Services IPO Important Dates
| Events | Date |
| IPO Opening Date | November 22, 2023 |
| IPO Closing Date | November 24, 2023 |
| Basis of Allotment Finalization | November 30, 2023 |
| Refunds Initiation | December 01, 2023 |
| Credit of Shares to Demat Account | December 04, 2023 |
| Share Listing Date | December 05, 2023 |
Fedbank Financial Services has filed the Draft Red Herring Prospectus with SEBI and is waiting for its approval for the same.
Afterward, the IPO is approved, and the company will set the Fedbank Financial Services IPO Dates to launch the IPO and invite bids from the public.
The IPO opening and closing dates will be determined after due consideration of every essential aspect of the market and happenings in society. The right IPO date can drive the success of the IPO largely.
Fedbank Financial IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs 133 to Rs 140 |
| Offer for Sale | Rs 492.26 Crore |
| Fresh Issue | Rs 600.00 Crore |
| IPO Size | Rs 1,092.26 Crore |
Fedbank Financial Services IPO Size will be formed of the equity shares offered via Fresh Issue and Offer for Sale.
The Fedbank Financial Services IPO Price will be determined by the company and selling shareholders in consultation with the Book Running Lead Managers.
The BRLMs for this issue are ICICI Securities Limited, Equirus Capital Private Limited, IIFL Securities Limited, and JM Financial Limited.
The face value of the offered shares is Rs. 10 each, and the shares will be listed on BSE and NSE.
Fedbank Financial Services IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 30 Nov 2023 | NA | NA | NA |
| 29 Nov 2023 | NA | NA | NA |
| 28 Nov 2023 | NA | NA | NA |
| 27 Nov 2023 | NA | NA | NA |
| 26 Nov 2023 | NA | NA | NA |
| 25 Nov 2023 | NA | NA | NA |
| 24 Nov 2023 | NA | NA | NA |
| 23 Nov 2023 | NA | NA | NA |
| 22 Nov 2023 | Rs 5 | NA | NA |
| 21 Nov 2023 | Rs 5 | NA | NA |
| 20 Nov 2023 | Rs 8 | NA | NA |
The Grey market is an unofficial market where the financial securities are bid and offered for trading. This trading market is unregulated and helps investors predict the listing price of shares on the stock exchange.
Grey Market Premium is the amount at which the equity shares are traded in the grey market among traders. Traders undertake trading in this market to make profits before the listing.
Fedbank Financial Services IPO GMP will reflect the price at which the IPO is likely to be listed.
Fedbank Financial IPO Subscription Status
| Day / Date | QIB | NII | RII | Emp | Total Subscription |
| 1st Day – 22nd Nov | 0.00x | 0.22x | 0.70x | 0.37x | 0.39x |
| 2nd Day – 23rd Nov | 0.56x | 0.54x | 1.30x | 0.79x | 0.92x |
| 3rd Day – 24th Nov | 0.56x | 0.60x | 1.38x | 0.85x | 0.98x |
| Shares Offered or Net Issue | 15,460,916 | 11,595,687 | 27,056,603 | 813,008 | 46,382,748 |
Fedbank Financial Services IPO Subscription will commence after the company files the Red Herring Prospectus with RoC. Subscription is when the company invites bids from the public to determine the price and allot the shares to the successful bidders.
The subscription of this IPO will be reserved in the following manner – 50% of the offer will be reserved for allocation to the Qualified Institutional Buyers, 15% of the offer will be open for the Non -Institutional Bidders, and the remaining portion of 35% will be reserved for the Retail Individual Bidders.
Fedbank Financial Services IPO Allotment Status
Allotment of shares means crediting the equity shares offered in the IPO in the Demat accounts of successful bidders. The basis of allotment for the IPO of Fedbank Financial Services IPO will be determined by the company and selling shareholders.
Fedbank Financial Services IPO Allotment will be undertaken according to the demand for the shares in the market.
Fedbank Financial Services IPO Live Performance
The Fedbank Financial Services IPO Performance will be represented here. You can access the prevailing Fedbank Financial Services IPO Price anytime here.
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Fedbank Financial Services – Company Review
Fedbank Financial Services Limited was instituted in 1995 in Kerala. The company is registered with the Reserve Bank of India to undertake the operations as a non-banking financial institution (NBFC) without accepting public deposits.
The company is backed by Federal Bank. Federal is a private sector bank registered and based in India. The headquarters of the bank is situated in Aluva, Kochi.
Fedbank Financial Services has over 463 branches in India. Also, the company has 86.25% of its total loan assets secured against tangible assets of customers.
Products or Services
Fedbank Financial Services caters to the requirements of finances in the form of Gold Loan, Home Loan, and Loan against property and business loans. It is the fastest-growing Gold Loan NBFC in India.
Fedbank Financial Services has a presence in over 15 states and union territories across India, covering 136 districts. The entity operates on a twin-engine” business model for efficiency and smoothness in the operations.
The Retail-focused NBFC, FedFina, also has two products designed for the MSMEs and emerging self-employed individuals, namely installment loans and gold loans.
Promoters and Holding
The promoter of Fedbank Financial Services Limited is The Federal Bank Limited.
The management of the company comprises:
- Balakrishnan Krishnamurthy, in the position of Chairman and Independent Director
- Anil Kothuri, in the position of Managing Director and Chief Executive Officer
- Shyam Srinivasan, in the position of Non-Executive Director
- Maninder Singh Juneja, in the position of Non-Executive Nominee Director
- Ashutosh Khajuria, in the position of Non-Executive Nominee Director
- Gauri Rushabh Shah, in the position of Independent Director
- V. Ganesh, in the position of Chief Financial Officer
- Vikas Mohan Srivastava, in the position of Chief Business Officer – Small Ticket Mortgage
- K Sureshkumar, in the position of Chief Business Officer – LAP and Distribution
- Anila Rajneesh, in the position of Chief Human Resources Officer
- Jagadeesh Rao, in the position of Chief Business Officer – Gold Loan
- Ramchandar R, in the position of Chief Business Officer – Unsecured Loan
- Shardul Kadam, in the position of Chief Risk Officer
- Siddharth K, in the position of Chief Operating Officer
- Rajaraman Sundaresan, in the position of Company Secretary and Compliance Officer
Is Fedbank Financial Services Good for Investment?
Fedbank Financial Services Limited has been in operation since 1995. The entity offers financial products like Loan Against Property (LAP), Gold Loan, Business Loan, and Home Loan.
The entity maintains high values and integrity in its operations. The entity’s values are Execution Excellence, People Focus, Integrity, and Customer-Centric. These are generally regarded as EPIC, the acronym of the values.
Fedbank Financial Services Limited is a subsidiary of Federal Bank based in Kochi, India.
The company is led by individuals with decades of experience in the financial sector, and they contribute in the most beneficial manner for the company.
The Fedbank Financial Services IPO is also a deliberate step for the company to enhance its potential in the long run.
Fedbank Financial Services Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-23 | 31-Mar-22 | Mar-21 | |
| Assets | 90,709.91 | 65,557.07 | 54,663.05 |
| Revenue | 11,788.00 | 8,693.15 | 6,918.25 |
| Expense | 9,562.90 | 7,444.28 | 6,206.38 |
| Profit After Tax | 1,801.33 | 1,034.59 | 616.84 |
Fedbank Financial Services Limited is a long-standing entity with multiple products facilitating ease in the financial dimension.
The DRHP of the company consists of the financial statements and portrays the company’s standings.
In the six months of 2023 ended March 31, 2023, Fedbank Financial Services Limited clocked a total income of 11,788.00 million, and its profits for the period stood at 1,801.33 million.
In the last few years, the company’s profits have been 508.15 million, 559.96 million, and 769.28 million, respectively, for 2019, 2020, and 2021.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-23 | 31-Mar-22 | Mar-21 | |
| Basic & Diluted | 5.60 | 3.32 | 2.19 |
The EPS of Fedbank Financial Services Limited as of March 31, 2023, was Rs. 5.60. Earlier in the year, the EPS was Rs. 3.32 in March 2022.
Fedbank Financial Services IPO Review
Fedbank Financial Services IPO is composed of a Fresh issue worth about Rs. 600.00 crore and an OFS of about 4,57,14,286 Equity Shares. The promoter of the company and an early investor will be selling their shares of the company.
The selling shareholders will receive the proceeds from the Offer for Sale, and the company will receive proceeds from the Fresh issue.
As per the DRHP, the company might consider a pre-IPO placement, and the IPO offer will include a reservation of the company’s eligible employees.
The company will be utilizing the proceeds of the fresh issue towards funding the capital requirement of its Tier–I capital base.
Fedbank Financial IPO Details
Here are a few more details you need to know before investing in Fedbank Financial Services IPO –
Fedbank Financial Services IPO Issue Object
Thus Fedbank Financial Services has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Requirement of Funds and Utilization of Net Proceeds
- Proposed Schedule of Implementation and Deployment of Funds
Fedbank Financial IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Our presence in large, underpenetrated markets with strong growth potential;
- Our “twin-engine” business model which ensures growth and risk insulation across economic cycles;
- Focus on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate;
- Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections
- Experienced, cycle-tested management team;
- Well-diversified funding profile with the advantage of lower cost of funds; and
- Technology-driven company with a scalable operating model.
Quantitative factors are:
| Basic EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-23 | 5.60 | 13.29 | 42.11 |
| 31-Mar-22 | 3.32 | 8.97 | – |
| Mar-21 | 2.19 | 7.39 | – |
Fedbank Financial Services IPO Lead Managers
Here is the list of Lead managers –
- ICICI Securities Limited
- BNP Paribas
- Equirus Capital Private Limited
- JM Financial Limited
Fedbank Financial Services IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg
Vikhroli (West) Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: fedbank.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor Grievance ID: fedbank.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Fedbank Financial Services IPO – Other Details
- Statutory Auditor – B S R & Co. LLP
- Legal Counsel to the Company – Cyril Amarchand Mangaldas
- Bankers to the Company – The Federal Bank Limited, DCB Bank Limited, State Bank of India, Axis Bank Limited, The South Indian Bank Limited, IDBI Bank Limited and Karnataka Bank Limited
Fedbank Financial Services IPO – Conclusion
The Fedbank Financial Services Limited is a trusted entity and has been in operation for decades. The company has a diverse product portfolio and aims to cater to the requirements of a large section of customers.
The company has an established and is backed by Federal Bank. Fedbank Financial Services IPO is a good opportunity for investors to invest in this NBFC and join the remarkable journey.
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Fedbank Financial Services IPO Review FAQs
Check out the FAQs on Fedbank Financial Services IPO –
What is the Issue Size of Fedbank Financial IPO?
The Company is making an initial public offer of 70,323,408 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Fedbank Financial Services IPO?
The price band for this particular IPO ranges between Rs 133 to Rs 140. As far as the face value of the share is concerned, it is Rs.10 per share.
What is the Fedbank Financial Services IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on November 22, 2023, while the closing date is set at November 24, 2023.
What is the Fedbank Financial IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on November 30, 2023, refund initiation is on December 1, 2023, credit of shares is on December 4, 2023, and share listing date is on December 5, 2023.
What is the Fedbank Financial Services IPO Listing Date?
Shares of this company shall be listed in the exchanges on December 5, 2023. The date, when the listing would be done, is stagnant on December 5, 2023.
Who is the Registrar of Fedbank Financial IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. LINK INTIME INDIA PRIVATE LIMITED. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Fedbank Financial IPO?
Here are the promoters of this IPO – THE FEDERAL BANK LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Fedbank Financial Services IPO?
They have obtained the GMP of this IPO and it is Rs NA. Further insights of the Kostak rate and subject to sauda or SS are as well included in this report.
Is Fedbank Financial Services IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Fedbank Financial Services Company?
We have the information on company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2023 in Million is 1,801.33, 2022 is 1,034.59, 2021 is 616.84.
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