Also read: Tata Technologies IPO: GMP, lot size, review. Apply or not?

Based on the CRISIL Report, as of March 31, 2023, the NBFC ranked third among NBFCs in the Indian peer set for assets under management (AUM) growth, with a three-year compound annual growth rate (CAGR) of 33% between Fiscals 2020 and 2023, and the fourth fastest year-over-year AUM growth of 42% for the three months ending June 30, 2023.

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The NBFC’s listed industry peers are Aptus Value Housing (with P/E of 28.58), IIFL Finance(with P/E of 15.53), Five Star Business Finance (with P/E of 37.54), Manappuram Finance Limited (with P/E of 8.06), Muthoot Finance Limited (with P/E of 15.39), SBFC Finance Limited (with P/E of 48.33), according to Red Herring Prospectus (RHP).

Fedbank Financial Services Limited’s profit after tax (PAT) increased by 74.11% and its revenue increased by 37.46%, between financial year ending with March 31, 2022, and March 31, 2023.

Also Read: Fedbank Financial Services IPO opens on November 22, price band set at ₹133-140 apiece

Here are the 10 key things to know about Fedbank IPO:

Fedbank Financial Services IPO date: Fedbank Financial Services IPO date of subscription is scheduled for Wednesday, November 22, and will close on Friday, November 24.

Fedbank Financial Services IPO price band: Fedbank Financial Services IPO price band has been fixed in the range of ₹133 to ₹140 per equity share of face value of ₹10.

Fedbank Financial Services IPO lot size: Fedbank Financial Services IPO lot size is 107 equity shares and in multiples of 107 equity shares thereafter.

Fedbank IPO anchor investors date: The allocation to anchor investors for Fedfina IPO is scheduled to take place on Tuesday, November 21.

Fedbank Financial Services IPO details: Federal Bank arm Fedfina IPO comprises of fresh issue of equity shares up to the value of ₹600 crore and an offer-for-sale (OFS) of up to 35,161,723 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 RHP.

Also Read: IPOs This Week: Dalal Street to remain buzzing as 6 new companies gear up to raise ₹7,300 crore; check full list here

The Federal Bank, the promoter shareholder, may sell up to 5,474,670 equity shares, and True North Fund VI LLP, the investor selling shareholder, may sell up to 29,687,053 equity shares, of the offer for sale up to 35,161,723 equity shares.

Fedbank IPO objectives: As per the RHP, the company plans to use the net proceeds from the new issue, to increase its Tier-I capital base in order to meet future capital requirements that will arise from the expansion of its assets and business. Additionally, a portion of the new issue’s proceeds will go towards covering offer expenses. 

In addition, the company expects to receive the benefits of listing of the equity shares on the stock exchanges, including enhancement of the company’s brand name and creation of a public market for the equity shares in India, said the company in its RHP.

Lead Manager and Registrar of Fedbank 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.

Also Read: Tata Technologies IPO vs IREDA IPO vs Gandhar Oil Refinery IPO: Which upcoming IPO is better?

Fedbank IPO reservation: 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.

Fedbank Financial Services IPO listing date and allotment date: 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.

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

Fedbank Financial Services IPO GMP today: Fedbank IPO GMP today or grey market premium is +5. This indicated Fedfina share price today are trading at a premium of ₹5 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Fedbank Financial Services share price was indicated at ₹145 apiece, which is 3.57% higher than the IPO price of ₹140.

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

Also Read: FedFina IPO: Federal Bank revives issue plans

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: 22 Nov 2023, 12:55 PM IST