Fedbank Financial Services Marks Subdued Market Debut, Lists at Rs 138 on NSE

30 Nov 2023 , 09:58 AM

Fedbank Financial Services, a non-banking finance company, experienced a lackluster market debut as its shares were listed at Rs 138 on the NSE, reflecting a discount of 1.43% compared to the issue price of Rs 140. 

The Mumbai-based NBFC’s initial public offering saw a subscription of 2.2 times from November 22-24, with qualified institutional investors subscribing 3.51 times their allotted quota. Non-institutional investors subscribed 1.45 times, and retail investors booked 1.82 times the reserved portion.

The subsidiary of Federal Bank and private equity fund True North Fund VI LLP raised Rs 1,092.26 crore through the public issue, comprising a fresh issue of shares worth Rs 600.77 crore and an offer-for-sale (OFS) of shares worth Rs 492.26 crore. 

Fedbank Financial Services has a widespread presence in 17 states and union territories across India, with a particularly strong footprint in the Southern and Western regions. The company has demonstrated robust performance, with a profit after tax growing at a 71% Compound Annual Growth Rate (CAGR) for FY21-23.