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Federal Bank arm Fedfina files papers with SEBI for IPO
July 28, 2023
Federal Bank Ltd promoted, Fedbank Financial Services Ltd (Fedfina), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).
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.
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. It concentrates on providing services to emerging sectors of self-employed people and Micro, Small & Medium Enterprises (MSMEs).
According to DRHP, the Federal Bank arm Fedfina intends to use the net proceeds from the fresh issue to increase its Tier-I capital base in order to satisfy future capital requirements brought on by the expansion of its operations and asset base. The fresh issue’s proceeds will be utilized in part to cover the offer expenses.
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