Federal Bank's subsidiary Fedfina refiles IPO DRHP with SEBI

27 Jul 2023 , 02:22 PM

Federal Bank subsidiary, Fedbank Financial Services Ltd (Fedfina), files Draft Red Herring Prospectus (DRHP) with SEBI for an IPO.

The IPO includes a fresh issue of equity shares worth Rs 750 crore and an offer-for-sale (OFS) of up to 70,323,408 equity shares. Promoters and promoter group will sell their shares in the OFS, with a face value of Rs 10 per equity share.

Federal Bank may sell up to 16,497,973 equity shares, and True North Fund VI LLP may sell up to 53,825,435 equity shares in the OFS.

Fedfina is among five NBFCs in India supported by private banks, focusing on services for self-employed individuals and MSMEs. 

The net proceeds from the fresh issue will be used to strengthen Tier-I capital and support expansion plans. Part of the proceeds will cover the expenses incurred during the IPO process.

Fedfina had previously withdrawn its IPO attempt due to unfavorable market conditions but is now reconsidering after regulatory approval.

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