Fedbank Financial Services IPO | Company receives Rs 325 crore from anchor investors

Fedbank Financial Services IPO opens on November 22

Retail focused non-banking financial services company Fedbank Financial Services has mopped up Rs 324.68 crore through its anchor book on November 21, ahead of IPO.

The bidding for the initial public offering will start on November 22, and the last day will be November 24. The price band for the offer has been fixed at Rs 133-140 per share.

As per the filing to exchanges, total 22 investors participated in the anchor book including Societe Generale, Integrated Core Strategies, Marshall Wace Investment Strategies, Goldman Sachs, Segantii India Mauritius, Copthall Mauritius Investment, and Citigroup Global Markets.

Domestic mutual funds and insurance companies like Nippon Life India, SBI Life Insurance Company, HDFC Mutual Fund, HDFC Life Insurance Company, Bandhan Mutual Fund, Kotak Mahindra Life Insurance Company, Tata AIA Life Insurance Company, Bajaj Allianz Life Insurance Company, and Canara HSBC Life Insurance Company also invested in the company via anchor book.

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"Board of directors of the company and the selling shareholders in consultation with the book running lead managers, has finalised allocation of 23,191,374 equity shares to anchor investors at a price of Rs 140 per share," Fedbank said.

The Mumbai-based NBFC aims to mop up Rs 1,092.26 crore via maiden public issue in the current week, consisting of a fresh issue of Rs 600 crore worth shares and an offer-for-sale (OFS) of 3.5 crore equity shares worth Rs 492.26 crore by selling shareholders.

Promoter Federal Bank and private equity fund True North Fund VI LLP are the selling shareholders in the OFS.

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

The Federal Bank-promoted company has reserved Rs 10 crore worth shares for its employees. The public issue excluding employees portion is the net offer.

Half of the net issue size has been reserved for qualified institutional buyers, 15 percent for high networth individuals and the remaining 35 percent for retail investors.

Also read: Fedbank Financial Services IPO opens on November 22: Should you subscribe to Rs 1,092 crore issue?

Fedbank Financial, which is focused on catering to the MSMEs and the emerging self-employed individuals (ESEIs) sector, covered 190 districts in 17 states and union territories in India through 584 branches.

Meanwhile, Fedbank Financial Services has raised Rs 330 crore from four investors through the secondary share sale during November 18-20, as per a filing with the exchanges.

Promoter Federal Bank and investor True North Fund VI LLP sold a total 2.35 crore shares of Fedbank to SBI Life Insurance Company, Star Union Dai-chi, Yasya Investments, Nuvama Crossover III, and Nuvama Crossover IIIA, in the secondary share sale at Rs 140 per share.