Fedbank Financial Services' IPO Subscribed 38% on Opening Day

22 Nov 2023 , 10:00 PM

On the opening day of Fedbank Financial Services’ public offering, 38% of the Rs 1,092 crore issue was subscribed, indicating tepid investor interest. Click here to subscribe the IPO.

Qualified institutional buyers showed no interest on the first day, the non-institutional investor portion garnered a 21% subscription, while the retail investor portion saw 67% subscription.

Before the public offering, the non-banking financial company (NBFC) successfully raised Rs 324.67 crore from 22 anchor investors. The IPO is set to conclude on November 24, with a price band fixed at Rs 133-140 per equity share. Interested investors can bid for a minimum of 107 shares and in multiples thereafter.

The issue comprises a fresh issue, aggregating up to Rs 600 crore, and an offer for sale by promoter Federal Bank and selling shareholder True North Fund VI LLP I. The NBFC intends to use the net proceeds from the fresh issue to bolster its Tier – I capital base, meeting future capital requirements driven by the growth of its business and assets.