Fedbank Financial Services IPO Raises ₹329.99 Crore Through Pre-IPO Placement

Fedbank Financial Services IPO Raises ₹329.99 Crore Through Pre-IPO Placement

VoM News Desk | November 21, 2023 | 04:33 PM IST | Breaking News | Follow on Google News

Fedbank Financial Services IPO Raises ₹329.99 Crore Through Pre-IPO Placement

Fedbank Financial Services IPO Raises ₹329.99 Crore Through Pre-IPO Placement

Fedbank Financial Services Limited has successfully raised ₹329.99 crore through a pre-IPO placement. The company sold 23,571,428 equity shares at ₹140 per share, the upper end of the price band, as per the company’s exchange filing.

Book Running Lead Managers and Registrar

The pre-IPO placement was managed by ICICI Securities Ltd, BNP Paribas, Equirus Capital Private Ltd, and JM Financial Ltd as the Book Running Lead Managers (BRLMs). Link Intime India Private Ltd is serving as the registrar to the offer.

Anchor Investor Allocation Scheduled

The allocation for anchor investors in the Fedfina IPO is set to take place on Tuesday, November 21. This step is crucial for determining investor interest in the IPO.

The pre-IPO placement includes distribution to various entities, such as SBI Life Insurance, Star Union Dai-chi, Yasya Investments, and Nuvama Crossover, among others. These shares are valued at different amounts, contributing to the total funds raised.

IPO Subscription and Price Band Details

The subscription for the Fedbank Financial Services IPO is scheduled to open on Wednesday, November 22, and will close on Friday, November 24. The IPO price band is set between ₹133 to ₹140 per equity share.

Fedbank plans to use the net proceeds from the IPO to augment its Tier-I capital base, supporting future asset and business expansion. A portion of the proceeds will also cover offer expenses, with the company looking to benefit from the listing of its equity shares on stock exchanges.

GMP and Expected Listing Price

The IPO’s grey market premium (GMP) stands at +5, suggesting that Fedfina shares are trading at a premium of ₹5 in the grey market. Considering the upper end of the IPO price band and the current GMP, the estimated listing price is indicated at ₹145 per share, 3.57% higher than the IPO price. This premium reflects investor enthusiasm and readiness to pay more than the issue price.

VoM News Desk

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