Upcoming IPO - Fedbank Financial Services Limited

About Company’s Business:

The retail-focused non-banking financial company promoted by The Federal Bank Limited is dedicated to serving the micro, small, and medium enterprises, as well as emerging self-employed individuals sectors. The company offers a carefully designed range of products tailored to meet the specific needs of its customers. These products include mortgage loans such as housing loans, small ticket loans against property, medium ticket loans against property, unsecured business loans, and gold loans. As of June 30, 2023, the assets under management for mortgage loans, gold loans, and unsecured business loans were ₹47,024.46 million, ₹31,241.72 million, and ₹14,872.49 million, respectively.

About the Industry:

In Fiscal 2023, the retail loans industry in India is characterized by housing finance and gold loans, constituting 46% and 12% of the market, respectively. As of March 2023, CRISIL MI&A projects the total value of outstanding loans provided by organized financiers, including banks and non-banking financial companies, to be ₹6.1 trillion. Non-banking financial companies hold a significant share, accounting for one-quarter of the overall market.

Key Financial Information (₹ in million):

Particulars As at and for the three-months period ended June 30, 2023 As at and for the three-months period ended June 30, 2022 As at and for the Financial Year ended March 31, 2023 As at and for the Financial Year ended March 31, 2022 As at and for the Financial Year ended March 31, 2021
Equity Share capital 3,219.12 3,215.48 3,219.12 3,215.18 2,899.23
Net worth(1) 14,149.03 12,025.27 13,556.82 11,535.18 8,347.34
Revenue from operations 3,613.92 2,475.07 11,788.00 8,693.15 6,918.25
Profit for the year 538.83 437.57 1,801.33 1,034.59 616.84
Earnings per equity share Basic: 1.67* Basic: 1.36* Basic: 5.60 Basic: 3.32 Basic: 2.19
Diluted: 1.67* Diluted: 1.36* Diluted: 5.59 Diluted: 3.31 Diluted: 2.18
Net asset value per Equity Share(2) 43.95 37.40 42.11 35.88 28.79
Total Borrowings(3) 76,195.16 54,974.36 71,358.23 50,168.35 43,280.92
  • Not annualised

Objective of the Issue:

  1. For augmentation of our Company’s Tier – I capital base

  2. Net Proceeds

  3. General corporate purposes.

For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.

Important information regarding the IPO
Open Date Wednesday, November 22, 2023
Close Date Friday, November 24, 2023
Issue Size ₹1,092.26 Crores
Price ₹133 to ₹140 per share
Lot Size 107 Shares
Basis of Allotment Thursday, November 30, 2023
Initiation of Refunds Friday, December 1, 2023
Credit of Shares to Demat Monday, December 4, 2023
Listing Date Tuesday, December 5, 2023

How to apply for this IPO?

You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.

Quick Apply for the IPO here!

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