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Fedbank Financial Services IPO

Fedbank Financial Services IPO

Fedbank Financial Services, subsidiary of Federal Bank, has filed preliminary papers with SEBI to raise funds worth Rs.1700 crores...

  • Status: Closed
  • RHP:
  • ₹ 14,231 / 107 shares

    Minimum Investment

IPO Details

  • Open Date

    22 Nov 2023

  • Close Date

    24 Nov 2023

  • IPO Price Range

    ₹ 133 to ₹ 140

  • IPO Size

    ₹ 1,100.00 Cr

  • Listing Exchange

    BSE, NSE

  • Listing Date

    30 Nov 2023

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IPO Timeline

Fedbank Financial Services IPO Subscription Status

Last Updated: 29 November 2023 5:07 PM by 5Paisa

Fedbank Financial Services Limited IPO is all set to open from 22nd November to 24th November 2023. The company is a retail-focused NBFC promoted by The Federal Bank Limited. The IPO includes a fresh issue of 42,912,087 shares worth ₹600.77 cr and an Offer for Sale (OFS) of 35,161,723 equity shares worth around ₹492.26 cr. The total IPO size is ₹1,092.26 cr. The share allotment date is 28th November, and the IPO will be listed on 30th of November on the stock exchanges. The price band is ₹133 to ₹140 per share and the lot size is 107 shares.    

ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited, and JM Financial Limited are the book-running lead managers for this IPO, while Link Intime India Private Limited is the registrar. 

Objectives of Fedbank Financial Services IPO

●    The proceeds from the issue will be used for augmenting the company’s Tier–I capital base to meet its future capital requirements arising out of the growth of business and assets.
 

FedBank Financial Services Ltd is a retail focused NBFC promoted by The Federal Bank Limited. It has the second and third lowest cost of borrowing among the micro, small and medium enterprises (“MSMEs”), gold loan and MSME & gold loan peer set in India in FY2023 and the quarter ending  June 30, 2023, respectively. Fedbank is the fastest growing gold loan NBFC among the gold loan peer set as of March 31, 2023. The company had the third fastest AUM growth with a CAGR of 33% between FY2020 and FY2023. Accounting for the June quarter of the current financial year, the AUM growth stands at 42%. 

Headquartered in Mumbai, FedBank has a presence in 136 districts in 17 states and union territories in India through 584 branches. The company operates on a “twin engine” business model, with two complementary products, namely gold loans and instalment loans to MSMEs and emerging self-employed individuals (“ESEIs”). This business model provides it with the opportunity for growth as well as a countercyclical hedge for disruptions in the Indian economy and the retail loans industry. 

Fedbank has been rated “AA+” by CARE for its non-convertible debentures (“NCDs") since 2022, and “AA-“ by India Ratings and Research Private Limited for its NCDs and long term bank facility. It also has a “Phygital” door-step model, a combination of digital and physical initiatives, for providing customised services to customers across all of its products.

Peer Comparison

●    Aptus Value Housing
●    IIFL Finance
●    Five Star Business Finance
●    Manappuram Finance Limited
●    Muthoot Finance Limited
●    SBFC Finance Limited

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY23 FY22 FY21
Revenue 1178.80 869.31 691.82
EBITDA 757.04 523.55 417.38
PAT 180.13 103.45 61.68
Particulars (in Rs. Crores) FY23 FY22 FY21
Total Assets 9070.99 6555.70 5466.30
Share Capital 321.91 321.51 289.92
Total Borrowings 7715.30 5402.18 4631.57
Particulars (in Rs. Crores) FY23 FY22 FY21
Net cash generated from / (used in) operating activities -1474.00 -577.89 -371.23
Net cash from / (used in) investing activities -129.52 -416.92 -70.52
Net cash flow from / (used in) financing activities 1621.52 534.74 825.50
Net increase (decrease) in cash and cash equivalents 27.99 -460.06 383.74

 


Strengths

1.    Present in large, underpenetrated markets with strong growth potential.
2.    A business model ensures growth and risk insulation across economic cycles.
3.    Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
4.    Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
5.    Well-diversified funding profile with the advantage of lower cost of funds.
6.    Technology-driven company with scalable operating model.

Risks

1.    Present in large, underpenetrated markets with strong growth potential.
2.    A business model ensures growth and risk insulation across economic cycles.
3.    Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
4.    Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
5.    Well-diversified funding profile with the advantage of lower cost of funds.
6.    Technology-driven company with scalable operating model.

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FAQs

The minimum lot size of Fedbank Financial Services IPO is 107 shares and the investment required is ₹14,231.

The price band of Fedbank Financial IPO is ₹ 133 to ₹ 140. 

Fedbank Financial Services IPO is open from 22nd November to 24th November 2023.

The Fedbank Financial IPO consists of a fresh issue of Rs.600.77 crore and an offer for sale (OFS) of up to 492.26 crore and aggregating up to ₹1,092.26 Cr.

The allotment date of the Fedbank Financial IPO is 28th of November 2023.

The Fedbank Financial Services IPO will be listed on the 30th of November 2023.

ICICI Securities Limited, Equirus Capital Private Limited, BNP Paribas and JM Financial Limited are the book-running lead managers for Fedbank Financial IPO.

The proceeds from the issue will be used for augmenting the company’s Tier–I capital base to meet its future capital requirements, arising out of the growth of business and assets.

To apply for Fedbank Financial Services IPO, follow the steps given below:

1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app