Fedbank Financial Services, a retail focused non-banking finance company (NBFC), saw up to 38% of its public offering subscribed on the first day of the issue on Wednesday. The ₹1,092 crore issue did not receive any interest from qualified institutional buyers on the first day, but 21% of the non-institutional investor portion was subscribed. Additionally, 67% of the retail investor portion received subscriptions.
The NBFC raised ₹324.67 crore from 22 anchor investors before the issue opened to the public. Notable investors such as HDFC Mutual Fund, HDFC Life Insurance, SBI Life Insurance, Nippon Life India, Societe Generale, Goldman Sachs (Singapore) PTE, and more bought into the issue.
The IPO, with a price band of ₹133-140 per equity share, will close on November 24. Investors can bid for a minimum of 107 shares and in multiples thereafter. The issue comprises a fresh issue aggregating up to ₹600 crore and an offer for sale by promoter Federal Bank, and the selling shareholder of True North Fund VI LLP.
The company plans to use the net proceeds from the fresh issue towards enhancing its Tier – I capital base to meet future capital requirements arising from the growth of its business and assets. Fedbank Financial Services, promoted by The Federal Bank, has 584 branches and focuses on MSME loans, gold loan, and more. It is one of the five private bank promoted NBFCs in the country and has seen significant growth in its assets under management (AUM) and total revenues. As of June 30, 2023, its Gross non-performing assets (NPA) and Net NPA were at ₹189 crore and ₹147 crore, respectively.
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