Fedbank Financial Services IPO: 10 must-know points from RHP

livemint.com:

₹600.77 crore via the issuance of fresh equity shares, whereas existing shareholders and promoters will offload 35,161,723 shares, aggregating to ₹492.26 crore. The total size of the IPO was ₹1,092.26 crore. The price band for the offer has been fixed at ₹133–140 per equity share with a face value of ₹10 each.

The quota for retail investors in the Fedbank Financial Services IPO has been fixed at 35% of the net offer. The QIB quota is fixed at 50%, while the quota for NII is reserved at 15%. Also Read Fedbank Financial Services IPO: GMP, review, other details.

Apply or not? Fedbank Financial Services is a retail-focused non-banking finance company promoted by the Federal Bank. It is the second and third lowest cost of borrowing among the micro, small, and medium enterprises (MSMEs), gold loan, and MSME and gold loan peer set in India in fiscal 2023 and the three-month period ended June 30, 2023, respectively, the company said in its RHP report. The company focuses on MSMEs and the emerging self-employed individuals (ESEIs) sector.

According to the CRISIL Report, the ESEI and MSME segments are largely unaddressed by lending institutions in India. The company believes that this segment provides them with a sizeable opportunity to rapidly grow and expand further. The company has a well-tailored suite of products targeted to match customers’ needs, which includes mortgage loans such as housing loans, small-ticket loans against property (LAP); and medium-ticket LAP, unsecured business loans, and gold loans.