Fedfina IPO: Federal Bank's Subsidiary Fedbank Financial Services Ltd Files IPO

Feedback Financial Services (FedFina), a subsidiary of Federal Bank, has filed it's Draft Red Herring Prospectus (DRHP) with SEBI for an IPO of its equity shares on February 19, 2022.

FedFina intends to launch an initial public offering of equity shares of FedFina with a face value of Rs.10 each (Offer), which will include a fresh issue of Equity Shares by FedFina worth up to Rs.900 crore (Fresh Issue), as well as an offer for sale of up to 1,64,97,973 Equity Shares by Federal Bank and up to 2,92,16,313 Equity Shares by True North Fund VI LLP.

The issue's lead managers are ICICI Securities Limited, Equirus Capital Private Limited, IIFL Securities Limited, and JM Financial Ltd.

The offer includes a reservation for subscription by qualified Federal Bank and FedFina workers, as well as the bank's shareholders, according to the private sector bank. The offer is contingent on receiving the necessary clearances, market circumstances, and other factors.

FedFina had a net profit of Rs 61.68 crore on total revenues of Rs 697.72 crore in FY21. The company's net value was Rs 834.73 crore as of March 31, 2021. FedFina will remain a subsidiary of Federal Bank after the proposed IPO, according to the lender. The Lender will retain more than 51% of the outstanding share capital when the transaction is completed.

Fedbank Financial Services Ltd (Fedfina)

The Federal Bank subsidiary, FedFina is India's fastest-growing gold loan NBFC. It is now active in 15 Indian states and union territories, having a considerable presence in the southern and western part of the country It has 463 branches as of September 2021, covering 136 districts in 15 Indian states and union territories, and 86.25% of its total loan assets were secured against physical assets, such as gold or client property. It had an AUM of Rs 2,933.83 Cr in installment loans to MSMEs and ESEIs, and Rs 2,132.92 crore in gold loans. The NBFC offers medium-term and small-ticket loans against property (LAP), business loans, as well as gold loans.