Fedbank Financial Services IPO: 10 key risk factors from RHP to know before investing
₹600 crore and an offer for sale (OFS) of up to 3.51 crore shares by selling shareholders. Fedbank Financial Services IPO price band has been fixed in the range of ₹133 to ₹140 per equity share and the company plans to raise a total of ₹1,092.26 crore from the upper end of the price band. The OFS comprises up to 54.74 lakh equity shares by its promoter Federal Bank and up to 2.96 crore shares by True North Fund VI LLP.
The company proposes to utilize the net proceeds from the fresh issue towards augmenting its Tier – I capital base to meet future capital requirements, arising out of the growth of its business and assets. Read here: Fedbank Financial Services IPO: 10 must-know points from RHP ICICI Securities, BNP Paribas, Equirus Capital Pvt Ltd and JM Financial are the Book Running Lead Managers to the issue, while Link Intime India Pvt Ltd is the IPO registrar. The Federal Bank arm FedFina had filed DRHP for an IPO last year but pulled out of it amid unfavourable market conditions.
It refiled IPO papers with SEBI again in July 2023. Here are key risk factors from the Fedbank Financial Services IPO RHP. 1) Fedbank Financial Services said it may face asset-liability mismatches, which could affect its liquidity and consequently may adversely affect its operations and profitability.
Asset and liability mismatch, which represents a situation when the financial terms of an institution’s assets and liabilities do not match. 2) The NBFC had negative cash flows in the past and may continue to have negative cash flows in the future. 3) As on June 30, 2023, 93.65% of the company’s gross asset under management (AUM) was concentrated in six states and two union territories and any adverse developments in these regions could have an
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