Fedbank Financial Services Collects Rs 325 Crore From Anchor Investors Ahead of IPO

New Delhi, November 21: Fedbank Financial Services, a subsidiary of south-based Federal Bank, announced on Tuesday that it has raised Rs 325 crore from anchor investors in preparation for its initial public offering (IPO). According to a circular posted on the BSE website, the company has allotted 2.32 crore equity shares to 22 funds at Rs 140 per share.

Participation of Renowned Investors

Goldman Sachs Singapore Pte, Copthall Mauritius Investment Ltd, Integrated Core Strategies Asia Pte, Citigroup Global Markets Mauritius, Bandhan Mutual Fund MF, HDFC MF, and Edelweiss MF are among the prominent investors who participated in the anchor book. SBI Life Insurance Company, HDFC Life Insurance Company, Kotak Mahindra Life Insurance Company, Tata AIA Life Insurance Company, and Bajaj Allianz Life Insurance Company are also among the investors.

Details of the Public Issue

The maiden public issue, with a price band of Rs 133-140 per share, will open for subscription for three days starting November 22. The issue comprises a fresh issue of 4.29 crore shares aggregating to Rs 600.77 crore and an offer for sale (OFS) of 3.52 crore shares amounting to Rs 492.26 crore. Under the OFS, Federal Bank will offload 1.65 crore shares, while True North Fund VI LLP will divest 5.38 crore shares.

Utilization of Funds

Fedfina intends to utilize the net proceeds from the fresh issue to augment its Tier-I capital base to meet its future capital requirements and cover offer expenses. ICICI Securities, BNP Paribas, Equirus Capital, and JM Financial are the book-running lead managers of the Fedbank Financial Services IPO.

Pre-IPO Placement Round

On Monday, Fedbank Financial Services raised Rs 330 crore in a pre-IPO placement round. SBI Life Insurance, Star Union Dai-chi, Yasya Investments, Nuvama Crossover III, and Nuvama Crossover IIIA were among the key investors in the round. The pre-IPO placement comprised 23,57,148 equity shares at the upper end of the price band of Rs 140 apiece.

The successful collection of funds from anchor investors and the participation of renowned institutions in the pre-IPO placement round reflect the strong investor interest in Fedbank Financial Services' upcoming IPO. The company's robust business model and growth prospects in the financial services sector make it an attractive investment opportunity for investors.