Fedbank Financial Services IPO: Grey market premium, dates for allotment and listing

Fedbank Financial Services IPO share allotment likely on November 28

Non-banking finance company Fedbank Financial Services IPO shares seem to be seeing muted demand in the grey market after tepid response from investors.

IPO shares can be traded in this unofficial market till they are listed on bourses. Participants look at the grey market to know the possible listing price.

The Rs 1,092-crore maiden public issue was booked 2.2 times during November 22-24. In the first two days, the offer was not fully subscribed.

Qualified institutional buyers bought 3.51 times the shares set aside for them, while retail investors bid 1.82 times their allotted quota of shares, and non-institutional investors 1.45 times the reserved portion.

The Mumbai-based NBFC is expected to finalise the basis of allotment of IPO shares by November 28, sources told Moneycontrol. This is tentative date and may change.

The participants can check their share allotment status on the BSE website as well as on the portal of IPO registrar (Link Intime India) by following three easy steps.

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On the BSE website,
a) Select issue type 'equity' and issue name 'Fedbank Financial Services Limited'
b) Enter either 'application number' or 'PAN number'
c) Check box (I am not a robot) and click on 'search' button

On the IPO registrar's portal,
a) Select 'Fedbank Financial Services Limited - IPO' in the dropdown
b) Select and accordingly enter either 'PAN number', or 'Application number', or 'DP Client ID'
c) Finally click on 'search' button

According to sources, the equity shares are expected to be credited to demat accounts of eligible investors by November 29 and the trading in equity shares may commence on the BSE and NSE with effect from November 30. These are tentative dates and may change.

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The initial public offering comprised of a fresh issue of shares worth Rs 600.77 crore by Fedbank, and an offer-for-sale of shares worth Rs 492.26 crore by promoter Federal Bank and investor True North Fund VI LLP.

The net fresh issue proceeds will be used mainly for augmenting the company's Tier I capital base to meet the future capital requirements, arising from the growth of the business and assets.

The retail-focused non-banking finance company caters to the MSMEs as well as the emerging self-employed individuals sector, with a presence in 17 states and union territories.