Fedbank Financial Services Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹140
Per ShareLot Size
107 Shares
Minimum Investment
₹14,980
Issue Size
₹1,092.26 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Fedbank Financial Services Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
72.28%
Promoter Holding (Post-Issue)
71.44%
Issue Type
Book Building
ISIN
INE007N01010
About the Company
Fedbank Financial Services Limited is a retail focused non-banking financial company promoted by The Federal Bank Limited. The Company is focused on catering to the micro, small and medium enterprises and emerging self-employed individuals sectors. It has a well-tailored suite of products targeted to match its customers' needs, which includes mortgage loans such as housing loans; small ticket loan against property; and medium ticket loan against property, unsecured business loans, and gold loans. Its mortgage loans, gold loans and our unsecured business loans had assets under management of Rs. 47,024.46 million, Rs. 31,241.72 million and Rs. 14,872.49 million as on June 30, 2023.
Industry Overview
Housing finance and gold loans cover 46% and 12% of the retail loans industry, respectively, in India in Fiscal 2023. As of March 2023, CRISIL MI&A estimates the outstanding value of loans given out by organised financiers' - banks and non-banking financial companies - to be Rs. 6.1 trillion, with non-banking financial companies accounting for one-quarter of the market.
Company History
The Company was incorporated as `Fedbank Financial Services Limited' on April 17, 1995 in Kerala at Kochi as a public limited company under the Companies Act, 1956, and was granted a certificate of incorporation by the Registrar of Companies, Kerala at Kochi. The Company received a certificate of commencement of business issued by the Registrar of Companies, Kerala at Kochi dated July 17, 1995. Subsequently, pursuant to a change in the registered office by way of a resolution passed by its shareholders on February 10, 2021, a certificate of registration in relation to the change of state was issued by the Registrar of Companies, Maharashtra at Mumbai on July 26, 2021.
Products & Services
- Gold Loans and instalment loans to MSMEs and emerging self-employed individuals ("ESEIs")
Growth Strategy
- Continue to deliver consistent and one of the industry leading return matrices building on past performance
- Focus on performance of its large branch network and extracting operating leverage
- Continue to invest in technology and digitization initiatives
- Continue to invest in talent and employee training to achieve industry leading productivity parameters
- Build on customer centricity as a foundation for customer retention and customer acquisition
Customer Base
The Company's customers are primarily belong to the low and middle-income groups
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 78,073,810* equity shares of face value of Rs. 10 each ("Equity Shares") of Fedbank Financial Services Limited ("Company" or "Issuer") for cash at a price of Rs. 140 per equity share (including a share premium of Rs. 130 per equity share) ("Offer Price") aggregating to Rs. 1092.26*^ crores (the "Offer") comprising a fresh issue of 42,912,087* equity shares aggregating to Rs. 6,00.00*^ crores (the "Fresh Issue") and an offer for sale of 35,161,723* equity shares aggregating to Rs. 492.26* crores (the "Offer for Sale"), comprising 5,474,670* equity shares aggregating to Rs. 76.65* crores by the Federal Bank Limited ("Promoter Selling Shareholder") and 29,687,053* equity shares aggregating to Rs. 415.62* crores by true north fund vi llp ("Investor Selling Shareholder", and together with the promoter selling shareholder, the "Selling Shareholders", and such equity shares offered by the selling shareholders, the "Offered Shares"). This offer included a reservation of 769,230* equity shares aggregating to Rs. 10.00^ crores for subscription by eligible employees (the "Employee Reservation Portion"). The company in consultation with the brlms, offered a discount of Rs. 10 per equity share of the offer price to eligible employee bidding in the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 21.16% and 20.95% of the post-offer paid-up equity share capital, respectively. *Subject to finalisation of basis of allotment ^ After employee discount
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- The Company's presence in large, underpenetrated markets with strong growth potential;
- Its "twin engine" business model which ensures growth and risk insulation across economic cycles;
- Focus on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate;
- Strong underwriting capability and presence in select customer segment combined with robust risk management capabilities focused on effective underwriting and collections
- Experienced, cycle tested management team;
- Its may face asset-liability mismatches, which could affect its liquidity and consequently may adversely affect the bank's operations and profitability.
- The company has had negative cash flows in the past and may continue to have negative cash flows in the future.
- As on June 30, 2023, 93.65% of its gross AUM was located in Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Puducherry and Delhi. Accordingly, our operations are concentrated in six states and two union territories and any adverse developments in these regions could have an adverse effect on its business and results of operations.
- Because its handle high volumes of cash and gold jewelry in a dispersed network of branches, the company is exposed to operational risks, including employee negligence, fraud, petty theft, burglary and embezzlement, which could harm its results of operations and financial position.
- Its inability to maintain its capital adequacy ratio could adversely affect the company's business, results of operations and its financial performance.