Fedbank Financial Services files IPO prospectus with Sebi

economictimes.indiatimes.com:

Fedbank Financial Services, promoted by Federal Bank, has filed its draft red herring prospectus (DRHP) with market regulator Sebi to raise funds through an initial public offering (IPO). The IPO comprises a fresh issue of up to ₹750 crore and an offer for sale aggregating up to 70.3 million shares by promoters and other shareholders.

Fedbank Financial focuses on catering to the MSMEs and the emerging self-employed individual sector. The offer for sale includes 16.5 million shares by Federal Bank and 53.8 million shares by True North Fund.

The NBFC proposes to utilise the net proceeds from the fresh issue to augment the Tier-I capital base to meet its future capital requirements arising out of the growth of business and assets. A part of the proceeds from the fresh issue will also be used towards meeting offer expenses, said the company in its DRHP.

ICICI Securities, BNP Paribas, Equirus Capital, and JM Financial are the bankers on the issue. The company and the selling shareholders may consider a private placement of up to 20% of the fresh issue for cash consideration of ₹150 crore before filing the draft papers.