At the upper end of the price band, the Federal Bank-promoted company will mop up Rs 1,092.26 crore to augment the company’s Tier-I capital base to fund growth of the business and assets.
The lost size has been fixed as a minimum bid for 107 equity shares and in multiples of 107 shares thereafter.
According to the company’s prospectus, the initial public offering comprises a fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) for 35 million equity shares.
Fedbank Financial Services is a subsidiary of The Federal Bank Ltd, which provides gold loans, home Loans, loan against property (LAP), and business loan services. The company’s clientele comes mainly from the MSME and emerging self-employed individuals (ESEI) sectors.
Fedbank Financial Services has reserved shares worth Rs 10 crore for its employees, who will get these shares at a discount of Rs 10 per share to the final offer price.
Excluding this, half of the remaining offer is reserved for qualified institutional buyers (QIBs), 15 per cent for high networth individuals (HNIs), and the remaining 35 per cent for retail investors.
Financial snapshot
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It’s revenue, too, has nearly doubled to Rs 1,214.68 crore from Rs 697.5 crore at the end of March 2021.