Fedbank Financial Services IPO: Issue receives tepid response from investors on Day 01
₹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%. On the first day of its offering, Fedbank Financial Services IPO garnered a subscription rate of 38%.
The IPO received bids for 2,14,85,493 shares against the 5,59,23,660 shares available for subscription, as per BSE data. Notably, the retail segment of the IPO showed strong demand, with a subscription rate of 67%. Also Read: Fedbank Financial Services IPO: 10 must-know points from RHP In the non-institutional investors (NIIs) segment, the subscription rate reached 21%, while the employee portion witnessed a subscription rate of 37%.
On the other hand, Qualified Institutional Buyers (QIBs) bid for only 21,935 shares, falling significantly short of the 1,53,49,339 shares reserved for them. 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.
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