Fedbank Financial Services Ltd IPO
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Fedbank Financial Services Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 780.19 L | ₹ 351.62 L | ₹ 270.57 L | ₹ 2,356.85 L | BSE | ₹ 1092.26 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 22 Nov, 23 | 24 Nov, 23 | 107 | ₹ 14,231 | Book Building | 30 Nov, 23 |
Fedbank Financial Services Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Finance & Investments |
| Sub Sector | NA |
| Issue Type | Book Building |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 1.39x | 38652290 | 53825280 |
| NII | 1.49x | 11595687 | 17304575 |
| Retail | 1.88x | 27056603 | 50790653 |
| Employee | 1.53x | 714286 | 1092577 |
| Total | 1.58x | 78018866 | 123013085 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Fedbank Financial Services Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 365.43 | 284.89 | 175.91 |
| EBITDA | 402.78 | 326.76 | 212.61 |
| PAT | 244.70 | 180.13 | 103.46 |
| Total Assets | 418.28 | 244.35 | 242.29 |
| Share Capital | 369.39 | 321.91 | 321.52 |
| Total Borrowings | 7,915.78 | 6,779.39 | 4,512.87 |
| Operating Activities (Net Cash) | 282.05 | 222.00 | 140.16 |
| Investing Activities (Net Cash) | 751.01 | 680.09 | 513.67 |
| Financing Activities (Net Cash) | 7,915.78 | 6,779.39 | 4,512.87 |
| Net Cashflow | 185.54 | 94.62 | 142.60 |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Fedbank Financial Services Ltd
The Company was incorporated as `Fedbank Financial Services Limited' on April 17, 1995 in Kerala at Kochi as a public limited company under the Companies Act, 1956, and was granted a certificate of incorporation by the Registrar of Companies, Kerala at Kochi. The Company received a certificate of commencement of business issued by the Registrar of Companies, Kerala at Kochi dated July 17, 1995. Subsequently, pursuant to a change in the registered office by way of a resolution passed by its shareholders on February 10, 2021, a certificate of registration in relation to the change of state was issued by the Registrar of Companies, Maharashtra at Mumbai on July 26, 2021.
Housing finance and gold loans cover 46% and 12% of the retail loans industry, respectively, in India in Fiscal 2023. As of March 2023, CRISIL MI&A estimates the outstanding value of loans given out by organised financiers' - banks and non-banking financial companies - to be Rs. 6.1 trillion, with non-banking financial companies accounting for one-quarter of the market.
Fedbank Financial Services Limited is a retail focused non-banking financial company promoted by The Federal Bank Limited. The Company is focused on catering to the micro, small and medium enterprises and emerging self-employed individuals sectors. It has a well-tailored suite of products targeted to match its customers' needs, which includes mortgage loans such as housing loans; small ticket loan against property; and medium ticket loan against property, unsecured business loans, and gold loans. Its mortgage loans, gold loans and our unsecured business loans had assets under management of Rs. 47,024.46 million, Rs. 31,241.72 million and Rs. 14,872.49 million as on June 30, 2023.
Peer Comparison:
- Aptus Value Housing Finance India Ltd
- Five Star Business Finance Ltd
- IIFL Finance Ltd
- Manappuram Finance Ltd
- Muthoot Finance Ltd
- SBFC Finance Ltd
Fedbank Financial Services Ltd IPO Key Points
Strengths
- The Company's presence in large, underpenetrated markets with strong growth potential;
- Its twin engine business model which ensures growth and risk insulation across economic cycles;
- Focus 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 segment combined with robust risk management capabilities focused on effective underwriting and collections
- Experienced, cycle tested management team;
Risk
- Its may face asset-liability mismatches, which could affect its liquidity and consequently may adversely affect the bank's operations and profitability.
- The company has had negative cash flows in the past and may continue to have negative cash flows in the future.
- As on June 30, 2023, 93.65% of its gross AUM was located in Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Puducherry and Delhi. Accordingly, our operations are concentrated in six states and two union territories and any adverse developments in these regions could have an adverse effect on its business and results of operations.
Strategy
- Continue to deliver consistent and one of the industry leading return matrices building on past performance
- Focus on performance of its large branch network and extracting operating leverage
- Continue to invest in technology and digitization initiatives
- Continue to invest in talent and employee training to achieve industry leading productivity parameters
- Build on customer centricity as a foundation for customer retention and customer acquisition
- The Company's presence in large, underpenetrated markets with strong growth potential;
- Its twin engine business model which ensures growth and risk insulation across economic cycles;
- Focus 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 segment combined with robust risk management capabilities focused on effective underwriting and collections
- Experienced, cycle tested management team;
How To Apply for Fedbank Financial Services Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.