- As much as 93% of its gross AUMs are concentrated around six states and two union territories of Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Puducherry and Delhi
- Fedbank intends to raise ₹1,092 crore from the initial public offer
- Investors can bid for a minimum of 107 shares and in multiples thereafter
- It plans to use net proceeds to augment Tier-I capital base and others
- The Floor Price is 13.30 times and the Cap Price is 14.00 times the face value of the Equity Shares
- The anchor investor bidding date shall be Tuesday, November 21
NE BUSINESS BUREAU
AHMEDABAD, NOV 19
Non-Banking Finance Company (NBFC) Fedbank Financial Services Limited on Saturday said its initial public offer (IPO will open for subscription on Wednesday, November 22 and close on Friday, November 24. South-based Federal Bank subsidiary’s IPO price band has been fixed at ₹133-140 per equity share. Investors can bid for a minimum of 107 shares and in multiples thereafter. The offer include reservation of up to ₹ 10 crore for Employees at a discount of ₹ 10 per equity share.
The anchor investor bidding date shall be Tuesday, November 21.
The company intends to raise as much as ₹1,092 crore via the IPO. The issue comprises a fresh issue aggregating up to ₹600 crore and an offer for sale up to 35,161,723 Equity Shares by promoter Federal Bank, and selling shareholder of True North Fund VI LLP I.
The Reserve Bank’s circular increasing the risk weights on unsecured lending will increase the borrowing costs, but the negative market sentiment will not impact the offering, Managing Director and Chief Executive Officer Anil Kothuri said.
The non-banking financial company (NBFC) plans to utilize the net proceeds from the fresh issue towards augmenting its Tier – I capital base to meet future capital requirements, arising out of the growth of its business and assets.
ICICI Securities, BNP Paribas, Equirus Capital Private and JM Financial are the book running lead managers to the Issue.
It’s a retail focused non-banking finance company (NBFC) promoted by The Federal Bank. It has 584 branches, including 92 in Gujarat, and is focussed on MSME loans, gold loan and more. It is one of the five private bank promoted NBFCs in the country.
As on March 31, 2023, it has the third fastest assets under management (AUM) growth among NBFCs in the peer set in India. Its AUMs grew at 33% CAGR (compounded annual growth rate) between FY20 and FY23. Its AUMs stand at 94,34 crore as of end of June 2023.
Its total revenues grew by 37% and 26% in FY23 and FY22 respectively. Its profit also grew by 74% and 67% during the same periods. As of June 30, 2023, its Gross non-performing assets (NPA) and Net NPA were at ₹189 crore and ₹147 crore, respectively.
As much as 93% of its gross AUMs are concentrated around six states and two union territories of Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Puducherry and Delhi. Any adverse developments in these regions could have an adverse effect on its business.
It has a concentration of loans to emerging self-employed individuals and MSMEs accounting to 45% and 64.7% of its loan profiles, respectively. The risk of non-payment or default by our borrowers may adversely affect our business, results of operations and financial condition, it says.
