Fedbank Financial Services Limited provides Gold Loans, Home Loans, Loan Against Property (LAP) and Business Loan Services.
Fedbank Financial Services is a retail focused non-banking finance company (“NBFC”) promoted by The Federal Bank Ltd. They have the 2nd lowest cost of borrowing among the micro, small and medium enterprises (“MSMEs”), gold loan and MSME & gold loan peer set in India in Fiscal 2023. As on March 31, 2023, they had the 3rd fastest AUM growth among NBFCs in the peer set in India with 3 Year CAGR of 33%
between Fiscals 2020 and 2023.
They are one among 5 private bank promoted NBFCs in India. They are the fastest growing gold loan NBFC in India among the peer set as of March 31, 2023. As on March 31, 2023, 85.98% of their total Loan Assets are secured against tangible assets, namely gold or customer’s property.
As of March 31, 2023, they covered 191 districts in 16 states and union territories in India through 575 branches. Their branches are located
instates, such as Andhra Pradesh (including Telangana) and Rajasthan.
They also have a “Phygital” doorstep model, a combination of digital and physical initiatives, for providing customized services to their customers across all of their products.
As on March 31, 2023, the AUM across their various products was 32.92% for gold loans, 25.23% for medium ticket LAP, 24.46% for small ticket LAP and housing loans and 16.03% for unsecured business loans.
Fedbank Financial Services IPO – Details
| IPO Opening Date | 22 November 2023 |
| IPO Closing Date | 24 November 2023 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 7,80,18,866 Shares Worth ₹1092.26 Crore Fresh Issue: 4,28,57,143 Shares Worth ₹600.00 Crore Offer For Sale: 3,51,61,723 Shares Worth ₹492.26 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹133 – ₹140 |
| Market Lot | 107 Shares |
| Min Order | 107 Shares (1 Lot) |
| Employee Discount | Rs 10 |
| Listing At | BSE, NSE |
| Register | Link Intime India Private Ltd |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Fedbank Financial Services IPO – Date Schedule
| IPO Open Date | 22 November 2023 |
| IPO Close Date | 24 November 2023 |
| Basis of Allotment Date | 30 November 2023 |
| Initiation of Refund | 01 December 2023 |
| Credit of Shares to Demat Account | 04 December 2023 |
| IPO Listing Date | 05 December 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on 24 November 2023 |
Fedbank Financial Services IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 107 | 14,980 |
| Retail (Max) | 13 | 1391 | 1,94,740 |
| S-HNI (Min) | 14 | 1498 | 2,09,720 |
| S-HNI (Max) | 66 | 7062 | 9,88,680 |
| B-HNI (Min) | 67 | 7169 | 10,03,660 |
Competitive Strengths
- Presence in large, underpenetrated markets with strong growth potential;
- 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;
- Well diversified funding profile with an advantage of lower cost of funds;
- Technology driven company with scalable operating model.
Company Promoters
- Federal Bank Limited
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2021 | 697.56 | 620.63 | 61.68 | 4328.09 |
| 31 March 2022 | 883.63 | 744.42 | 103.45 | 5016.83 |
| 31 March 2023 | 1214.68 | 956.29 | 180.13 | 7135.82 |
Key Performance Indicator
| KPI | Values |
|---|---|
| P/E (x) | 25.04 |
| Market Cap (₹ Cr.) | 5165.06 |
| EPS (Rs) | 5.6 |
| RoNW | 13.29% |
Object Of The Issue
- Augmenting the company’s Tier I capital base to meet the company’s future capital requirements, arising from the growth of the business and assets.
- Meeting offer expenses.
Fedbank Financial Services IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Aptus Value Housing | 27.04 |
| 2 | 2 | IIFL Finance | 14.52 |
| 3 | 1 | Five Star Business Finance | 31.73 |
| 4 | 2 | Manappuram Finance Limited | 7.28 |
| 5 | 10 | Muthoot Finance Limited | 14.29 |
Fedbank Financial Services IPO Promoter Holding
| Pre Issue Share Holding | 72.28% |
| Post Issue Share Holding | 62.40% |
Fedbank Financial Services IPO Prospectus
Company 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 Registrar
| 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(s)
| 1. ICICI Securities Limited 2. JM Financial Limited 3. BNP Paribas 4. Equirus Capital Private Limited |
Fedbank Financial Services IPO FAQs
| What is Fedbank Financial Services IPO? Fedbank Financial Services IPO is a main-board IPO. The issue is priced at ₹133 to ₹140 per equity share. The IPO is to be listed on BSE & NSE. |
| When Fedbank Financial Services IPO will open? The IPO is to open on 22 November 2023 for QIB, NII, and Retail Investors. |
| What is Fedbank Financial Services IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Fedbank Financial Services IPO? You can apply Fedbank Financial Services IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Fedbank Financial Services IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Fedbank Financial Services”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Fedbank Financial Services IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Fedbank Financial Services”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Fedbank Financial Services IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Fedbank Financial Services”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Fedbank Financial Services IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Fedbank Financial Services”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Fedbank Financial Services IPO Size? Fedbank Financial Services IPO size is ₹1092.26 Crore. |
| What is Fedbank Financial Services IPO Price Band? Fedbank Financial Services IPO Price Band is ₹133 to ₹140. |
| What is Fedbank Financial Services IPO Minimum and Maximum Lot Size? The minimum bid is 107 Shares with ₹14,980 amount while the maximum bid is 1391 Shares with ₹1,94,740. |
| What is the Fedbank Financial Services IPO Allotment Date? Fedbank Financial Services IPO allotment date is 30 November 2023. |
| What is the Fedbank Financial Services IPO Listing Date? Fedbank Financial Services IPO listing date is 05 December 2023. The IPO is to list on BSE and NSE. |
