The floor price is 13.30 times the face value of the equity shares and the cap price is 14 times. The price to earnings ratio based on diluted EPS for financial year 2023 at the cap price is as high as 25.04 as compared to avaerage industry peer group per ratio of 25.57. Fedbank Financial Services IPO lot size is 107 equity shares and in multiples of 107 equity shares thereafter.

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Tentatively, Fedbank IPO basis of allotment of shares will be finalised on Thursday, November 30 and the company will initiate refunds on Friday, December 1, while the shares will be credited to the demat account of allottees on Monday, December 4. Fedbank Financial Services IPO shares are likely to be listed on BSE and NSE on Tuesday, December 5, as per reports. If in case, the company decides to switch to T+3 norm, the dates will get preponed.

Fedbank Financial Services IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors. A discount of ₹10 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Also Read: Diwali 2023: Seven mainboard IPOs expected this year post festive season

Fedbank Financial Services IPO details

Federal Bank arm Fedfina IPO comprises of fresh issue of equity shares up to the value of ₹750 crore and an offer-for-sale (OFS) of up to 70,323,408 equity shares by the promoters selling shareholders and promoter group make up the offer, which has a face value of ₹10 per equity share, as per Draft Red Herring Prospectus (DRHP).

The Federal Bank, the promoter shareholder, may sell up to 16,497,973 equity shares, and True North Fund VI LLP, the other shareholder, may sell up to 53,825,435 equity shares, of the offer for sale up to 70,323,408 equity shares.

Federal Bank arm Fedfina is one of five NBFCs in India that have been supported by private banks.

Also Read: Federal Bank arm Fedfina files papers with SEBI for IPO

ICICI Securities Ltd, BNP Paribas, Equirus Capital Private Ltd, and JM Financial Ltd are the Book Running Lead Managers (BRLM) to the issue, and Link Intime India Private Ltd is the registrar to the offer.

Federal Bank arm FedFina filed DRHP for an IPO last year. However, the company pulled out of it as it found the market conditions unfavourable. Now the company is reconsidering capital raising options after the lapse of earlier received regulatory approval, and filed papers with SEBI this July.

Also Read: IPO Watch: 4 mainboard IPOs open next week, Tata Technologies IPO, IREDA IPO, among others; here’s all you need to know

The company’s listed industry peers are Aptus Value Housing (with P/E of 27.04), IIFL Finance(with P/E of 14.52), Five Star Business Finance (with P/E of 31.73), Manappuram Finance Limited (with P/E of 7.28), and Muthoot Finance Limited (with P/E of 14.29).

Fedbank Financial Services IPO GMP today

Fedbank Financial Services IPO GMP today or grey market premium is ₹0, which means shares are trading at their issue price of ₹140 with no premium or discount in the grey market according to investorgain.com

Based on last 10 sessions grey market activities, today IPO GMP trend indicates no major movement and signals same trend till listing day, according to investorgain.com analysts.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: Tata Technologies IPO opens on November 22, price band set at ₹475-500 per share

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Updated: 17 Nov 2023, 07:59 AM IST