What you need to know about Fedbank Financial Services IPO?
by 5paisa Research Team
17 Nov 2023
Listing Details
- Listing Exchange BSE, NSE
- Listing Date 30-Nov-23
- IPO Price Range ₹133
- Listing Price ₹137.75
- Listing Change -1.6 %
- Last Traded Price ₹93.5
- Current Change -33.2 %
Fedbank IPO Details
- Open Date 22-Nov-23
- Close Date 24-Nov-23
- Lot Size 107
- IPO Size ₹ 1,100.00 Cr
- IPO Price Range ₹ 133 to ₹ 140
- Min Investment ₹ 14231
- Listing Exchange BSE, NSE
- Basis of Allotment 28-Nov-23
- Refunds 29-Nov-23
- Credit to Demat Account 29-Nov-23
- Listing Date 30-Nov-23
Fedbank Financial Services IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 22-Nov-23 | 0.00 | 0.22 | 0.70 | 0.39 |
| 23-Nov-23 | 0.56 | 0.54 | 1.30 | 0.92 |
| 24-Nov-23 | 3.48 | 1.49 | 1.88 | 2.24 |
Fedbank IPO Synopsis
Fedbank Financial Services Limited IPO is all set to open from 22nd November to 24th November 2023. The company is a retail-focused NBFC promoted by The Federal Bank Limited. The IPO includes a fresh issue of 42,912,087 shares worth ₹600.77 cr and an Offer for Sale (OFS) of 35,161,723 equity shares worth around ₹492.26 cr. The total IPO size is ₹1,092.26 cr. The share allotment date is 28th November, and the IPO will be listed on 30th of November on the stock exchanges. The price band is ₹133 to ₹140 per share and the lot size is 107 shares.
ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited, and JM Financial Limited are the book-running lead managers for this IPO, while Link Intime India Private Limited is the registrar.
Objectives of Fedbank Financial Services IPO
● The proceeds from the issue will be used for augmenting the company’s Tier–I capital base to meet its future capital requirements arising out of the growth of business and assets.
About Fedbank Financial Services
FedBank Financial Services Ltd is a retail focused NBFC promoted by The Federal Bank Limited. It has the second and third lowest cost of borrowing among the micro, small and medium enterprises (“MSMEs”), gold loan and MSME & gold loan peer set in India in FY2023 and the quarter ending June 30, 2023, respectively. Fedbank is the fastest growing gold loan NBFC among the gold loan peer set as of March 31, 2023. The company had the third fastest AUM growth with a CAGR of 33% between FY2020 and FY2023. Accounting for the June quarter of the current financial year, the AUM growth stands at 42%.
Headquartered in Mumbai, FedBank has a presence in 136 districts in 17 states and union territories in India through 584 branches. The company operates on a “twin engine” business model, with two complementary products, namely gold loans and instalment loans to MSMEs and emerging self-employed individuals (“ESEIs”). This business model provides it with the opportunity for growth as well as a countercyclical hedge for disruptions in the Indian economy and the retail loans industry.
Fedbank has been rated “AA+” by CARE for its non-convertible debentures (“NCDs") since 2022, and “AA-“ by India Ratings and Research Private Limited for its NCDs and long term bank facility. It also has a “Phygital” door-step model, a combination of digital and physical initiatives, for providing customised services to customers across all of its products.
Peer Comparison
● Aptus Value Housing
● IIFL Finance
● Five Star Business Finance
● Manappuram Finance Limited
● Muthoot Finance Limited
● SBFC Finance Limited
Fedbank Financial Services Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue | 1178.80 | 869.31 | 691.82 |
| EBITDA | 757.04 | 523.55 | 417.38 |
| PAT | 180.13 | 103.45 | 61.68 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Total Assets | 9070.99 | 6555.70 | 5466.30 |
| Share Capital | 321.91 | 321.51 | 289.92 |
| Total Borrowings | 7715.30 | 5402.18 | 4631.57 |
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | -1474.00 | -577.89 | -371.23 |
| Net cash from / (used in) investing activities | -129.52 | -416.92 | -70.52 |
| Net cash flow from / (used in) financing activities | 1621.52 | 534.74 | 825.50 |
| Net increase (decrease) in cash and cash equivalents | 27.99 | -460.06 | 383.74 |
Fedbank IPO Key Points
-
Strengths
1. Present in large, underpenetrated markets with strong growth potential.
2. A business model ensures growth and risk insulation across economic cycles.
3. Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
4. Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
5. Well-diversified funding profile with the advantage of lower cost of funds.
6. Technology-driven company with scalable operating model. -
Risks
1. Present in large, underpenetrated markets with strong growth potential.
2. A business model ensures growth and risk insulation across economic cycles.
3. Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
4. Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
5. Well-diversified funding profile with the advantage of lower cost of funds.
6. Technology-driven company with scalable operating model.
Fedbank
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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Fedbank IPO FAQs
What is the minimum lot size and investment required for the Fedbank Financial Services Ltd IPO?
The minimum lot size of Fedbank Financial Services IPO is 107 shares and the investment required is ₹14,231.
What is the price band of Fedbank Financial IPO?
The price band of Fedbank Financial IPO is ₹ 133 to ₹ 140.
When does the Fedbank Financial Services IPO opens and closes?
Fedbank Financial Services IPO is open from 22nd November to 24th November 2023.
What is the size of Fedbank Financial Services IPO?
The Fedbank Financial IPO consists of a fresh issue of Rs.600.77 crore and an offer for sale (OFS) of up to 492.26 crore and aggregating up to ₹1,092.26 Cr.
What is the allotment date of the Fedbank Financial Services?
The allotment date of the Fedbank Financial IPO is 28th of November 2023.
What is the Fedbank Financial Services IPO listing date?
The Fedbank Financial Services IPO will be listed on the 30th of November 2023.
Who are the book runners for Fedbank Financial Services IPO?
ICICI Securities Limited, Equirus Capital Private Limited, BNP Paribas and JM Financial Limited are the book-running lead managers for Fedbank Financial IPO.
What is the objective of the issue?
The proceeds from the issue will be used for augmenting the company’s Tier–I capital base to meet its future capital requirements, arising out of the growth of business and assets.
How to apply for the Fedbank Financial Services IPO?
To apply for Fedbank Financial Services IPO, follow the steps given below:
1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
4. You will receive a mandate notification to block funds in your UPI app
Contact Details of Fedbank Financial Services IPO
Contact Information
Fedbank Financial Services Limited
Kanakia Wall Street,
A Wing 5th Floor, Unit No. 511 Andheri Kurla Road,
Andheri (East) Mumbai 400 093
Phone: +91 22 6852 0601
Email: cs@fedfina.com
Website: https://www.fedfina.com/
Fedbank Financial Services IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: fedbankfinancialservices.ipo@linkintime.co.in
Website: https://linkintime.co.in/mipo/ipoallotment.html
Fedbank Financial Services IPO Lead Manager
ICICI Securities Limited
Bnp Paribas
Equirus Capital Private Limited
Jm Financial Limited
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