Fedbank Financial Services IPO | Issue opens on November 22, price band at Rs 133-140 per share

Fedbank Financial Services IPO opens on November 22

Non-banking finance company Fedbank Financial Services is going to launch its public issue for subscription on November 22. It has set a price band for the offer at Rs 133-140 per share.

The Rs 1,092.26-crore public issue will close on November 24, while the anchor book, a part of QIB, will be opened for a day on November 21.

The initial public offering comprises a fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) of 3.5 crore equity shares worth Rs 492.26 crore at the upper price band by the selling shareholders.

Promoter, The Federal Bank, will be selling 54.74 lakh shares in the OFS, and the rest of shares will be sold by investor True North Fund VI LLP, the private equity fund.

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The Mumbai-based NBFC will utilise the net proceeds from the fresh issue for augmenting its Tier – I capital base to meet future capital requirements, arising out of the growth of the business and assets.

The firm has reserved Rs 10 crore worth shares in the IPO for its employees who will get these shares at a discount of Rs 10 per share to the final offer price.

The public issue excluding employees' portion is the net issue. Half of the net offer size has been reserved for qualified institutional buyers, 15 percent for high networth individuals and the remaining 35 percent for retail investors.

Also read: Tata Technologies IPO: 10 things to know before subscribing to Rs 3,042 crore issue

Investors can bid for a minimum 107 equity shares and in multiples of 107 shares thereafter. Hence, the retail investors can make a minimum investment of Rs 14,980 (107 shares) and their maximum investment will be Rs 1,94,740 (1,391 shares).

Mumbai-headquartered Fedbank that provides loans to the MSMEs and the emerging self-employed individuals is owned by the listed entity Federal Bank with 72 percent shareholding. True North Fund VI LLP holds 25.3 percent shares in the NBFC.

The merchant bankers to the public issue are ICICI Securities, BNP Paribas, Equirus Capital, and JM Financial.

Also read: Gandhar Oil Refinery India IPO opens on November 22, fresh issue component at Rs 302 crore

Along with Fedbank, IPOs by Tata Technologies, Gandhar Oil Refinery, Flair Writing Industries, and Indian Renewable Energy Development Agency will also be launching next week.