Fedbank Financial Services Limited | Globe Capital Market LTD.
Fedbank Financial Services Limited
Closed
Price Band
₹133 to ₹140 per share
IPO Issue Period
Nov 22, 2023 to Nov 24, 2023
Issue Size
₹1,092.26 Cr
Face value
₹10 per share
Fresh issue
₹600.00 Cr
Offer for sale
₹492.26 Cr
Minimum Shares for Retail
107 Shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
Dec 5, 2023
QIB
50%
NII
15%
Retail
35%

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Fedbank Financial Services Limited provides Gold Loans, Home Loans, Loan Against Property (LAP) and Business Loan Services.

Fedbank is a retail-focused non-banking finance company (NBFC), with the second lowest cost of borrowing among the micro, small, and medium enterprises (MSMEs), gold loan, and MSME & gold loan peer set in India in Fiscal 2023. The company’s clientele comes mainly from the MSME and emerging self-employed individuals (ESEI) sectors.

The company’s product range includes mortgage loans such as housing loans; small ticket loans against property (LAP); and medium ticket LAP, unsecured business loans, and gold loans. The company also has a Phygital doorstep model, a combination of digital and physical initiatives, for providing customized services to customers across all the products.

As of March 31, 2023, Fedbank Financial Services has offices in 191 districts in 16 states and union territories in India through 575 branches with a strong presence in Southern and Western regions of India including Andhra Pradesh (including Telangana) and Rajasthan.

Competitive Strengths:

  • Presence in large, underpenetrated markets with strong growth potential.
  • Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
  • Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
  • Experienced, cycle-tested management team.
  • Well-diversified funding profile with the advantage of lower cost of funds – Technology-driven company with a scalable operating model

For year/ period ended ( in Cr.)

H1FY23 FY22 FY21
Total Revenue 1214.68 883.64 697.57
Profit After Tax 180.13 103.13 61.68
EPS 5.60 3.32 2.19
OPM (%)
PATM (%)

 

  • Presence in large, underpenetrated markets with strong growth potential.
  • Focused on retail loan products with a collateralized lending model targeting individuals and the emerging MSME sector which is difficult to replicate.
  • Strong underwriting capability and presence in select customer segments combined with robust risk management capabilities focused on effective underwriting and collections.
  • Experienced, cycle-tested management team.
  • Well-diversified funding profile with the advantage of lower cost of funds – Technology-driven Company with a scalable operating model.
  • Augmenting the company’s Tier I capital base to meet the company’s future capital requirements, arising from the growth of the business and assets.
  • Meeting offer expenses.

Fedbank has marked steady growth in its top and bottom lines for the reported periods. Federal Bank will continue to hold major stake post IPO. Financial service sector is set to play a vital role in speeding up the economy. Investors may lap it up for medium to long term rewards.

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