Federal Bank board nods subsidiary Fedbank Financial Services IPO proposal; To announce Q3 results on Jan 25; Stock makes strong gains so far this week

13 Jan 2022 , 03:34 PM

Federal Bank stock has made healthy gains so far this week and Thursday was no different. The Bank is in focus since its board approved initiating the process of initial public offering (IPO) for a subsidiary, Fedbank Financial Services. The Bank is set to announce its Q3 earnings next week.

On January 11, Federal Bank announced that the board of directors have approved initiating the process of an initial public offering (“IPO”) of Fedbank Financial Services by way of fresh issue and offer for sale, subject to market conditions, receipt of applicable approvals including that of Securities and Exchange Board of India (“SEBI”) and other considerations.

The size of the IPO, portion of an offer for sale (if any), price and other details concerning the proposed IPO by FedFina will be determined in due course. Notably, post undertaking the proposed IPO, FedFina would continue to be a subsidiary of the Bank.

Since then, the Bank’s stock has gained by more than 5%. As per BSE data, on January 11, Federal Bank stock was at Rs96.8 per piece and has gained to an intraday high of Rs101.85 per piece on Thursday – resulting in an upside of over 5.5%.

So far in this week, the Bank’s stock has gained nearly 7% if taken into consideration today’s high and Monday’s price level of Rs95.5 per piece.

On Wednesday, the Bank announced that it will present its financial performance for the third quarter ending December 2021 (Q3FY22) on January 25.