INDIA: Fedbank Financial Services Limited has announced its initial public offering (IPO) of equity shares, which will open on November 22, 2023. The IPO comprises a fresh issue of equity shares worth up to INR 600 crore and an offer for sale of up to 35,161,723 equity shares by selling shareholders. The price band for the offer has been fixed at INR 133 to INR 140 per equity share, with bids being accepted for a minimum of 107 equity shares and in multiples of 107 equity shares thereafter. The offer includes a reservation of up to INR 10 crore for employees at a discount of INR 10 per equity share.
The company plans to use the net proceeds from the fresh issue to augment its Tier-I capital base and meet future capital requirements arising from the growth of its business and assets. A portion of the proceeds will also be used towards meeting offer expenses. The equity shares offered through this IPO are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.
The offer is being made through the book-building process, with not more than 50% of the offer available for allocation on a proportionate basis to qualified institutional buyers (QIBs). The company and the selling shareholders may, in consultation with the book-running lead managers, allocate up to 60% of the QIB portion to anchor investors on a discretionary basis. The offer also includes a reservation aggregating up to INR 10 crore for subscription by eligible employees.
ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited, and JM Financial Limited are the book-running lead managers to the issue.
Potential investors should note that investment in equity shares involves a high degree of risk, and for details relating to such risk, please see the section entitled “Risk Factors” in the Red Herring Prospectus. The equity shares offered in the offer have not been, and will not be, registered under the U.S. Securities Act of 1933 and may not be offered or sold within the United States, except under an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities law