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Federal Bank, subsidiary Fedbank Financial Services will launch its Initial public offering on Wednesday. The public issue, with a price band of Rs 133-140 a share, will close on Friday (November 24).
The Rs 1,092-crore issue consists of a fresh issue of 4.29 crore shares aggregating to Rs 600.77 crore and an offer for sale (OFS) of 3.52 crore shares to the tune of Rs 492.26 crore.
Lot size is 107 equity shares. Federal Bank will offload 1.65 crore shares, and True North Fund VI LLP will divest 5.38 crore shares.
Fedbank Financial Services has reserved not more than 50 per cent of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15 per cent for Non Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for Retail Investors. It also has quota for employees, who will get a discount of Rs 10 a share.
Fedfina proposes to utilise the net proceeds from the fresh issue towards augmenting the Tier-I capital base to meet its future capital requirements and offer expenses.
Anchor investors
Fedbank Financial Services on Tuesday raised Rs 325 crore from anchor investors ahead of its initial public offering (IPO). The company has allotted 2.32 crore equity shares to 22 funds at Rs 140 per piece, according to a circular uploaded on the BSE web site.
Among the investors that participated in the anchor book include -- Goldman Sachs (Singapore) Pte, Copthall Mauritius Investment Ltd, Integrated Core Strategies (Asia) Pte, Citigroup Global Markets Mauritius, Bandhan Mutual Fund (MF), HDFC MF and Edelweiss MF. SBI Life Insurance Company, HDFC Life Insurance Company, Kotak Mahindra Life Insurance Company, Tata AIA Life Insurance Company and Bajaj Allianz Life Insurance Company are among other investors.
ICICI Securities, BNP Paribas, Equirus Capital and JM Financial are the book-running lead managers of the Fedbank Financial Services IPO.
Pre-IPO placement
On Monday, Fedbank Financial Services raised Rs 330 crore in a pre-IPO placement round. SBI Life Insurance, Star Union Dai-chi, Yasya Investments, Nuvama Crossover III, and Nuvama Crossover IIIA are some of the key investors in the round. The pre-IPO placement comprised 23,57,148 equity shares at the upper end of the price band of Rs 140 apiece.
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