Fedbank Financial Services files DRHP for IPO

Federal Bank's subsidiary Fedbank Financial Services Limited ("FedFina") has filed its Draft Red Herring Prospectus ("DRHP") with SEBI for the proposed Initial Public Offering ("IPO") of its equity shares on February 19, 2022.

FedFina is proposing to undertake an initial public offering of equity shares of face value of Rs.10 each of FedFina ("Equity Shares" and such offering, the "Offer"), comprising a fresh issue of Equity Shares by FedFina aggregating up to Rs.9,000 million (the "Fresh Issue") and an offer for sale of up to 1,64,97,973 Equity Shares by our Bank and up to 2,92,16,313 Equity Shares by True North Fund VI LLP, in accordance with the Companies Act, 2013, and rules made thereunder, each as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018 as amended (the "SEBI ICDR Regulations") and other applicable laws at such price as may be determined in consultation with the book running lead managers to the Offer and through the book building process under SEBI ICDR Regulations.

In accordance with the provisions of SEBI ICDR Regulations, the Offer includes a reservation for subscription by eligible employees of our Bank and FedFina (as defined in the DRHP) and a reservation for subscription by our Bank's shareholders (as defined in the DRHP). The Offer is subject to receipt of requisite approvals, market conditions and other considerations.

Basis the annual report for Financial Year ended March 31, 2021, FedFina had:

• Revenue from operations of Rs. 682.47 Cr;
• Totalrevenue of Rs. 697.72 Cr;
• Profit after tax of Rs. 61.68 Cr; and
• Net Worth as on March 31, 2021 was Rs. 834.73 Cr

As on February 19th, 2022, the Bank held 23,56,85,332 equity shares of face value of Rs. 10 each aggregating to 73.31% of the issued, subscribed and paid-up share capital of FedFina.

Shares of The Federal Bank Limited was last trading in BSE at Rs. 97.90 as compared to the previous close of Rs. 98.20. The total number of shares traded during the day was 481820 in over 1858 trades.

The stock hit an intraday high of Rs. 98.95 and intraday low of 96.90. The net turnover during the day was Rs. 47294479.00.

Source : Equity Bulls

Keywords

TheFederalBank INE171A01029 FedFina FedbankFinancialServices DRHP SEBI IPO FundRaising