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The initial public offering of Federal Bank’s subsidiary, Fedbank Financial Services, will also close today for public subscription. The issue was subscribed 90 per cent at the end of Day 2 on Thursday. The IPO received bids for 5.05 crore shares, against the 5.59 crore shares on offer. The public issue comes at price band of Rs 133-140 a share..
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.
The lot size is 107 equity shares. While Federal Bank will offload 1.65 crore shares, 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 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 for retail investors. It also has a quota for employees, who will get a discount of Rs 10 a share. The retail segment of the IPO witnessed decent demand, with a subscription rate of 1.12 times while others are still undersubscribed. The non-institutional investors’ quota was subscribed 52 per cent, and while the employee portion witnessed a subscription rate of 78 per cent. The QIB portion saw 0.56 per cent.
The net proceeds from the fresh issue will be used towards augmenting its Tier-I capital base to meet its future capital requirements and offer expenses.
Fedbank Financial Services on Tuesday raised Rs 325 crore from anchor investors. 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 who that participated in the anchor book were 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 the other investors.
ICICI Securities, BNP Paribas, Equirus Capital and JM Financial are the book-running lead managers of the Fedbank Financial Services IPO.
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