Fedbank Financial Services IPO: Financials, shareholding, comparison with peers in 5 charts
Fedbank Financial Services IPO comprises a fresh issuance of shares worth Rs 600 crore and an offer-for-sale (OFS) of 3.5 crore equity shares
Fedbank Financial Services’ IPO will open for subscription on November 22. The company has set a price band for the offer at Rs 133-140 per share. The Rs 1,092.26-crore public issue will close on November 24, while the anchor book, a part of qualified institutional buyers (QIB), will open for a day on November 21. The public offer comprises a fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) of 3.5 crore equity shares worth Rs 492.26 crore at the upper price band by the selling shareholders.
Fedbank Financial Services’ net interest income grew 34 percent to Rs 638.02 crore in FY23 from Rs 474.24 crore in FY22. Net interest margin (NIM)n also rose slightly to 8.99 percent. Profit after tax jumped 74 percent to Rs 180.13 crore from Rs 103.46 crore in the same period.
Pre-issue, the promoter held a 72.28 percent stake in Fedbank Financial Services, while the public owned 27.73 percent. After the IPO, the promoter stake will come down to 62.4 percent and that of the public will increase to 37.6 percent.
Fedbank Financial Services’ net non-performing assets (NPA) stood at 1.59 percent, which is higher compared to peers. Five Star Business Finance NPA came in at 0.69 percent, Aptus Value Housing NPA at 0.86 percent, Manappuram Finance at 1.10 percent, IIFL Finance at 1.1 percent and SBFC Finance at 1.41 percent.
Fedbank Financial Services’ assets under management (AUM) grew 46.59 percent in FY23 compared to 27.25 percent in FY22. Five Star Business Finance, Aptus Value Housing, Manapuuram Finance, IIFL Finance and SBFC Finance AUM rose to 36.47 percent, 30.08 percent, 17.15 percent, 26.22 percent and 54.84 percent, respectively. While Muthoot Finance AUM came down to 8.88 percent from 10.32 percent.
Fedbank Financial Services’ return on assets (RoA) stood at 2.31 percent and return on equity (RoE) at 14.36 percent in FY23. While Muthoot Finance topped the list with 17.63 percent RoE, SBFC Finance remained at the bottom with 9.93 percent. Five Star Business Finance reported a RoA of 8.02 percent.
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