FedFina of Federal Bank Gears Up for Its IPO

FedFina (Fedbank Financial Services Ltd.), a subsidiary of Federal bank, has filed the initial papers with market regulator Securities and Exchange Board of India to garner funds through an IPO (initial public offering).

Keep reading to get the details!

A Closer Look into FedFina’s Public Issue

As per the company’s DRHP (Draft Red Herring Prospectus) filed with SEBI, this public issue will comprise an OFS (Offer for Sale) of 45,714,286 (maximum) equity shares by investors and promoters. Alongside, there will be a fresh issue of equity shares accumulating to Rs. 900 crores.

The OFS will consist of divestment of up to 29,216,313 shares by True North Fund VI LLP and up to 16,497,973 shares by Federal Bank.

After the completion of FedFina’s offering, Federal Bank will own over 51% of the remaining share capital. The net proceeds from the company’s fresh issue will be utilised to expand the Tier-I capital base. This will suffice its future capital needs arising from the growth of assets and business.

Know More About FedFina

Fedbank Finacial Services Ltd. is a retail-based NBFC that follows a ‘twin engine’ model of business. It has received its NBFC license in the year of 2010. This company has more than 463 branches throughout India, and its headquarter is located in Mumbai.

The entity offers products such as business loans, loans against property, home loans and gold loans. It aims to empower India through its easily accessible credit. It uses the value term EPIC which denotes execution excellence, people focus, integrity and customer-centric.

Wrapping Up

FedFina has emerged as a competitive player in the market through the brand of Federal Bank and its management expertise, track record and long operating background. It facilitates its complementary products, namely instalment loans and gold loans, to self-employed individuals (emerging) and MSMEs.

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Frequently Asked Questions

1. Who are the lead managers of FedFina’s IPO?

JM Financial, IIFL Securities, Equirus Capital and ICICI Securities are the lead managers of FedFina’s initial public offering.

2. Who are the CEO and the non-executive director of FedFina?

Anil Kothuri is the managing director and CEO of FedFina. However, Shyam Srinivasan is FedFina’s non-executive director.

3. Who are FedFina’s competitors?

Competitors of FedFina are Himalayan Bank, Delphi Bank, EnerBank and Barclays Bank US.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.