Fedbank Financial Services Raises Rs 324.68 Crore from Anchor Investors Ahead of IPO

22 Nov 2023 , 07:00 AM

Retail-focused non-banking financial services company, Fedbank Financial Services, successfully secured Rs 324.68 crore through its anchor book on November 21, paving the way for its imminent Initial Public Offering (IPO).

The bidding for the IPO is set to commence on November 22 and will conclude on November 24, with the price band fixed at Rs 133-140 per share.

A total of 22 investors participated in the anchor book, including prominent names such as Societe Generale, Integrated Core Strategies, Goldman Sachs, and domestic entities like Nippon Life India and SBI Life Insurance Company.

The board of directors, in consultation with the book running lead managers, finalized the allocation of 23,191,374 equity shares to anchor investors at a price of Rs 140 per share. The Mumbai-based NBFC aims to raise Rs 1,092.26 crore through a maiden public issue, consisting of a fresh issue of Rs 600 crore worth of shares and an offer-for-sale (OFS) of 3.5 crore equity shares worth Rs 492.26 crore by selling shareholders.

Utilization of Funds: Fedbank Financial plans to utilize the net fresh issue proceeds to augment its Tier – I capital base, meeting future capital requirements arising from business and asset growth.

Employee Reservation and Offer Structure: The company has reserved Rs 10 crore worth of shares for its employees, and the public issue, excluding the employees’ portion, constitutes the net offer. Half of the net issue size has been reserved for qualified institutional buyers, 15 percent for high net worth individuals, and the remaining 35 percent for retail investors.

Business Focus and Coverage: Fedbank Financial Services, with a focus on catering to the MSMEs and emerging self-employed individuals (ESEIs) sector, has an extensive presence, covering 190 districts in 17 states and union territories in India through 584 branches.

Secondary Share Sale: In a separate development, Fedbank Financial Services raised Rs 330 crore from a secondary share sale during November 18-20. Promoter Federal Bank and investor True North Fund VI LLP sold a total of 2.35 crore shares to entities including SBI Life Insurance Company, Star Union Dai-chi, and others, at Rs 140 per share.