Fedbank Financial Services, established on April 17, 1995, is a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank. The company primarily serves the Micro, Small, and Medium Enterprises (MSMEs) and the emerging self-employed individuals sector.
| Bidding Dates |
|---|
| 22 Nov 2023 - 24 Nov 2023 |
| Subscription |
|---|
| 2.2x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹14,231 | 1 | 13 | 107 | 78.0 M | ₹133 - ₹140 | 78.85 % | ₹10376.5 M - ₹10922.6 M | RHP DOC |
Fedbank Financial IPO SUBSCRIPTION STATUS
24 Nov '23Fedbank Financial IPO overall subscription rate was 2.2 times the total available shares
Fedbank Financial IPO retail subscription rate was 1.82 times in the retail segment
Fedbank Financial IPO non-institutional investor subscription rate was 1.45 times in the non-institutional investor category
Fedbank Financial IPO Qualified Institutional Bidder subscription rate was 3.51 times the available shares for Qualified Institutional Bidder
Fedbank Financial IPO Employees subscription rate was 1.34 times in the Employees category
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers | Employees |
|---|---|---|---|---|
| Category Reservation | 35% | 15% | 50% | - |
24 Nov 2023 (Day 3) | 1.82x | 1.45x | 3.51x | 1.34x |
23 Nov 2023 (Day 2) | 1.26x | 0.52x | 0.56x | 0.78x |
22 Nov 2023 (Day 1) | 0.67x | 0.21x | 0x | 0.37x |
Fedbank Financial FINANCIALS
| Period | Net Profit (Rs in millions) | Interest Income (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) |
| Q1FY24 | 538.8 | 3,412.4 | -2,922.6 | -2,944.5 |
| Q1FY23 | 437.6 | 2,336.2 | -4,003.1 | -4,015.5 |
| FY23 | 1,801.3 | 11,101.7 | -14,740.0 | -14,890.7 |
| FY22 | 1,034.6 | 8,218.9 | -5,778.9 | -6,047.3 |
| FY21 | 616.8 | 6,581.1 | -3,712.3 | -3,823.4 |
Fedbank Financial IPO SUBSCRIPTION STATUS DETAILS
Fedbank Financial had 78.0 M shares on offer
Fedbank Financial IPO offer price was in the range ₹133 - ₹140
Fedbank Financial IPO minimum Investment was ₹14231
Fedbank Financial IPO issue size was ₹ 10376.5 M - ₹ 10922.6 M
Fedbank Financial had a minimum lot size of 107 Shares per application
Fedbank Financial NUMBER OF SHARES ON OFFER
Fedbank Financial IPO IMPORTANT DATES
| Issue Open Date | 22 Nov 2023 |
| Issue close Date | 24 Nov 2023 |
| Allotment Date | 28 Nov 2023 |
| Refund Date | 29 Nov 2023 |
| Demat Account Credit Date | 29 Nov 2023 |
| Listing Date | 30 Nov 2023 |
| Listing on Exchange(s) | NSE and BSE |
| Fedbank Financial Allotment Status | Exchange |
Fedbank Financial IPO subscription opened on 22 Nov 2023, and closed on 24 Nov 2023
IPO allotment for Fedbank Financial was finalized on Tuesday, 28 Nov 2023
IPO listing for Fedbank Financial was on NSE and BSE on Thursday, 30 Nov 2023
Fedbank Financial IPO LISTING GAINS
| Issue Price (adjusted) | 140.0 |
| Listing Open Price | 138.0 |
| Listing Close Price | 140.3 |
| Listing Gain% | -1.4% |
| Current Gain% | 7.1% |
Fedbank Financial Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fedbank Financial Services Ltd. | 149.9 | 5530.3 | 14.7 | 0.2 | 2.4 | 11.7 | 2 | 2226.6 | 7.1 | 343.6 | 52.6 | 10.2 | 66.5 |
| Bajaj Finance Ltd. | 1102.2 | 686224.7 | 33.8 | 2 | 8 | 16.7 | 3.4 | 81989.5 | 17.6 | 19017.4 | 14.3 | 32.6 | 16.5 |
| Shriram Finance Ltd. | 1137.8 | 267718.5 | 23.7 | 1.4 | 5.4 | 15.2 | 3.1 | 48192.6 | 15.1 | 10024.2 | 4.9 | 48.1 | 16.8 |
| Jio Financial Services Ltd. | 254 | 167719.8 | 81.2 | 3 | 34.2 | 1.2 | 1 | 3542.6 | 70.4 | 1560.9 | -3.2 | 3.1 | 27.2 |
| Cholamandalam Investment & Finance Company Ltd. | 1920 | 161816.4 | 28.1 | 1 | 5 | 17.2 | 2.1 | 31538.7 | 20.6 | 5232.6 | 22.8 | 68.2 | 29.1 |
| Tata Capital Ltd. | 367.8 | 156147.5 | 28.9 | 1 | 4.8 | 10.8 | 1.7 | 31582.6 | 11.3 | 4846.1 | 32.2 | 12.7 | 28.9 |
Fedbank Financial INFORMATION ON IPO ISSUE
About Fedbank Financial
Fedbank Financial Services, established on April 17, 1995, is a retail-focused non-banking finance company (NBFC) promoted by The Federal Bank. The company primarily serves the Micro, Small, and Medium Enterprises (MSMEs) and the emerging self-employed individuals sector.
Object of the Issue
- To utilize the net proceeds from the fresh issue towards augmenting the company’s tier-I capital base to meet its future capital requirements, arising out of the growth of the business and assets
- To meet offer expenses
Fedbank Financial - PROMOTERS
| Name |
|---|
| The Federal Bank Limited |
Fedbank Financial Book Running Lead Managers
ICICI Securities Limited
fedfina.ipo@icicisecurities.com
Fedbank Financial Book Running Lead Manager
BNP Paribas
DL.Fedfina.IPO@bnpparibas.com
Equirus Capital Private Limited
fedfina.ipo@equirus.com
JM Financial Limited
fedfina.ipo@jmfl.com
Fedbank Financial Registrar to the Offer
Link Intime India Private Limited
fedbankfinancialservices.ipo@linkintime.co.in
Fedbank Financial Strengths
Underpenetrated markets
The company operates in large, underpenetrated markets that have strong growth potential. It concentrates on retail loan products, employing a collateralized lending model that targets individuals and the emerging MSME sector, a strategy that is challenging to replicate
Strong underwriting capability
The company possesses robust underwriting capabilities, and its presence in select customer segments, combined with effective risk management strategies, focuses on efficient underwriting and collections, aiding in growth
Scalable operating model
The company has a scalable operating model and a well-diversified funding profile, benefiting from the advantage of lower cost of funds
Fedbank Financial Risks
Dependent on gold loan products
The company derives a significant portion of its assets under management from its gold loan products. The loss of business in relation to these products could adversely affect the business and its prospects
Competitive market
The company operates in markets that are competitive and characterised by continuously evolving customer needs. If it does not compete effectively with established companies and new market entrants, its business could be adversely affected
Cyclical industry
The company operates in a cyclical industry, where economic downturns can hinder its ability to grow its business or maintain levels of liquidity, loss minimisation, and revenue growth. This is crucial to sustain its business and remain viable throughout the credit cycle
IPO FAQs
This IPO consists of an offer for sale of up to Rs 492.3 crore, of 35,161,723 shares. It also consists of a fresh issue of Rs 600.0 crore.
The promoter of the company is The Federal Bank Limited.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 133.0 - 140.0.
The IPO application opens on Nov 22, 2023 and closes on Nov 24, 2023.
The minimum lot size for the IPO is 107. The maximum lot size for the IPO is 1391.
For all category investors, the minimum application amount for this IPO is Rs. 14,231.0, the maximum value for this IPO is Rs 194,740.0.
This IPO will be allotted on Nov 28, 2023.
The refund will be credited to your account on Nov 29, 2023.
The allotted shares will be credited to your demat on Nov 29, 2023.
Fedbank Financial Services Ltd.’s shares listed on the stock exchanges on Nov 30, 2023.