Fedbank Financial Services Shares List At 1.4% Discount To IPO Price
On the BSE, the stock started trading at Rs 137.75 apiece, a 1.6% discount.
Source: BQPrime)
Fedbank Financial Services Ltd. shares debuted at Rs 138 apiece on the National Stock Exchange, a discount of 1.4% over the IPO price of Rs 140 apiece.
On the BSE, the stock debuted at Rs 137.75 apiece, at a 1.6% discount.
The shares ended at a premium of 0.17% over the IPO price and ended at Rs 140.25 apiece on NSE.
Fedbank Financial Services' initial public offering was subscribed 2.20 times on its final day.
The bids for Fedbank Financial Services were led by institutional investors (3.51 times), non-institutional investors (1.45 times), and retail investors (1.82 times).
The share sale was a mix of fresh issue of 4.29 crore shares, aggregating to Rs 600.7 crore; and an offer for sale of 3.52 crore shares to the tune of Rs 492.26 crore.
The company used the net proceeds from the fresh issue to augment Tier-I capital base to meet its future capital requirements arising out of the growth of business and assets.
ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial were managing the IPO.
The company raised Rs 330 crore from anchor investors via a pre-IPO placement earlier this month. The pre-IPO placement comprised 23.5 lakh equity shares, according to an exchange filing.
SBI Life Insurance, Star Union Dai-chi, Yasya Investments, Nuvama Crossover III, and Nuvama Crossover IIIA are some of the key investors.
Business Model
Fedbank Financial Services is a retail-focused NBFC, promoted by Federal Bank Ltd.
Fedbank Financial Services has the second and third lowest cost of borrowing among MSMEs, gold loan, and MSME and gold loan peer set in India in fiscal 2023, and the quarter ended June, respectively, according to Crisil.
It is one of the top five NBFCs promoted by private banks in India. Fedbank Financial witnessed a three-year CAGR of 33% between FY20 and FY23, and the fourth fastest year-on-year asset under management growth of 42% for the quarter ended June, according to Crisil.
