Fedbank Financial Services IPO Sees Tepid Response, Subscribed Only 75% on Day 2

23 Nov 2023 , 02:30 PM

On November 23, the second day of bidding, the Fedbank Financial Services IPO achieved a subscription rate of 75%, with bids reaching 4.19 crore shares against the total issue size of 5.6 crore shares. Click here to subscribe the IPO.

Retail investors demonstrated significant interest, subscribing to 1.03 times of their allocated share quota, while non-institutional investors (NIIs) participated at a rate of 34%. In contrast, qualified institutional buyers (QIBs) have subscribed 56%.

The company has earmarked Rs 10 crore worth of shares for its employees, who can avail them at a discounted price of Rs 10 from the final offer price. Employees have subscribed to 64 percent of their allocated quota.

Fedbank Financial Services aims to raise Rs 1,092.26 crore through the IPO, which consists of a fresh issuance of 4.29 crore shares valued at Rs 600.77 crore and an offer-for-sale (OFS) of 3.51 crore shares worth Rs 492.26 crore at the upper end of the Rs 133-140 price band.

ICICI Securities, BNP Paribas, Equirus Capital Private, and JM Financial serve as the book-running managers for the issue, while Link Intime India functions as the registrar.