Fedbank Financial Services lists at 1.6% discount to IPO price

In the past five days, the stock is down 3 percent as against 1 percent rise in the benchmark Sensex

Fedbank Financial Services stock made a subdued debut, listing at a 1.61 percent discount to the IPO price on November 30. The shares opened at Rs 137.75 on NSE and Rs 138 on BSE against the issue price of Rs 140. Soon after, the stock slipped 3.82 percent to Rs 134.65.

The lacklustre opening was expected as ahead of the listing, the grey market premium (GMP) of Fedbank was wiped out on low investor interest.  The grey market is an unofficial platform where shares start trading much before the allotment and continue till the listing day. Most investors track the grey market premium to get an idea of the listing price.

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Fedbank raised Rs 1,092.26 crore through the IPO, which comprised a fresh issuance of 4.29 crore shares worth Rs 600.77 crore and an offer-for-sale (OFS) of 3.51 crore shares worth Rs 492.26 crore at the upper end of the Rs 133-140 price band.

Fedbank Financial Services raised Rs 324.68 crore through the anchor book on November 21. A total of 22 investors participated in the anchor book, including Societe Generale, Integrated Core Strategies, Marshall Wace Investment Strategies, Goldman Sachs, Segantii India Mauritius and Copthall Mauritius Investment.

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The issue was subscribed 2.2 times on November 24, the final day of subscription. Investors had bid for 12.3 crore shares against an issue size of 5.6 crore. Retail investors bought 1.82 times their allotted quota of shares, non-institutional investors (NIIs) picked up 1.45 times, while qualified institutional buyers (QIBs) subscribed 3.51 times the portion set aside for them.

Federal Bank Fedbank Financial Services (Fedfina) is a Mumbai-based retail-focused non-banking finance company (NBFC) and caters to the MSMEs as well as the emerging self-employed individuals sector. It has a presence in 17 states and union territories.