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Fedbank Financial Services is a retail-focused NBFC planning to raise up to Rs 1,092.26 crore through an initial public offering. The subscription for the IPO will be open from November 22 to November 24, 2023. The price band is fixed at Rs 133 – Rs 140 per share.
The IPO consists of fresh issue of shares worth Rs 600 crore and offer for sale of shares worth Rs 492.26 crore. The face value is set at Rs 10 per share.
Company Summary
Fedbank Financial Services is a retail focused non-banking finance company (NBFC) promoted by The Federal Bank Limited. The company has the second lowest cost of borrowing among the micro, small and medium enterprises (MSMEs), gold loan and MSME & gold loan peer set in India in Fiscal 2023.
As on March 31, 2023, the NBFC had the third fastest AUM growth among NBFCs in the peer set in India with a three year CAGR of 33% between Fiscals 2020 and 2023. The company is the fastest growing gold loan NBFC in India among the peer set as of March 31, 2023. As on March 31, 2023, 85.98% of its our total loan assets are secured against tangible assets, namely gold or customer’s property.
The NBFC is headquartered in Mumbai, Maharashtra. As of March 31, 2023, the company has covered 191 districts in 16 states and union
territories in India through 575 branches with a strong presence in Southern and Western regions of India. Additionally, the company has
185 dedicated micro-sites in its website for each of their branches, which focus solely on customer engagement for the branch customers.
Fedbank also has a “Phygital” doorstep model, a combination of digital and physical initiatives, for providing customized services
to our customers across all the products that helps the NBFC to constantly remain in touch with their customers.
Company Strengths
- Strong presence in large and under-penetrated markets with higher growth potential.
- Focus on retail loan products with a collateralized lending model targeting individuals and emerging MSME sector.
- Technology driven company with scalable operating model.
- Strong underwriting capabilities along with robust risk management and effective collections.
- Experienced management team with significant experience in the financial services industry.
- Access to diversified sources of funding leading to optimized borrowing costs.
Company Financials
Period Ended | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 9,070.99 | 6,555.71 | 5,466.31 |
Total AUM (Rs in crore) | 9,069.6 | 6,187.2 | 4,862.43 |
Total Revenue (Rs in crore) | 1,214.68 | 883.64 | 697.57 |
Revenue from Operations (Rs in crore) | 1,178.8 | 869.32 | 691.83 |
Net Interest Income (Rs in crore) | 638.02 | 474.24 | 344.92 |
Net Interest Margin | 8.17% | 7.89% | 7.22% |
Profit After Tax (Rs in crore) | 180.13 | 103.46 | 61.68 |
Net Worth (Rs in crore) | 1,355.68 | 1,153.52 | 834.73 |
Reserves and Surplus (Rs in crore) | 1,021.52 | 832 | 544.45 |
Total Borrowing (Rs in crore) | 7,135.82 | 5,016.84 | 4,328.09 |
Net NPA | 1.59% | 1.75% | 0.71% |
Purpose of the IPO
- The net proceeds from fresh issue of shares are proposed to be utilised towards augmentation of the company’s Tier – 1 capital base to meet its future capital requirements which are expected to arise out of the growth in the company’s business and assets.
- The company expects to receive the benefits of listing of equity shares on the stock exchanges, including enhancement of its brand name and creation of a public market for its equity shares in India.
- The proceeds from offer for sale will be received by selling shareholders after deducting their proportion of Offer related expenses and relevant taxes. The company will not receive any proceeds from offer for sale.
Company Promoters
Federal Bank Limited is the promoter of the company.
IPO Details
IPO Subscription Date | November 22, 2023 to November 24, 2023 |
Face Value | Rs 10 per share |
Price Band | Rs 133 to Rs 140 per share |
Lot Size | 107 Shares |
Total Issue Size | Rs 1,092.26 crore |
Fresh Issue | Rs 600 crore |
Offer for Sale | 3,51,61,723 shares of Rs 10 aggregating up to Rs 492.26 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 107 | Rs 14,980 |
Retail (Maximum) | 13 | 1391 | Rs 194,740 |
Small HNI (Minimum) | 14 | 1,498 | Rs 209,720 |
Small HNI (Maximum) | 66 | 7,062 | Rs 988,680 |
Large HNI (Minimum) | 67 | 7,169 | Rs 10,03,660 |
Allotment Details
Event | Date |
Allotment of Shares | November 30, 2023 |
Initiation of Refunds | December 1, 2023 |
Credit of Shares to Demat Account | December 4, 2023 |
Listing Date | December 5, 2023 |
To check allotment, click here