Quick News Bit

Federal Bank’s subsidiary FedFina files IPO papers with Sebi

0
New Delhi: Fedbank Financial Services Ltd (FedFina), which is promoted by Federal Bank, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The public issue consist of a fresh issue aggregating up to Rs 900 crore and an Offer for Sale (OFS) of up to 45,714,286 equity shares by promoter and investor, according to the draft red herring prospectus (DRHP).

The OFS comprises up to 16,497,973 equity shares by Federal Bank and up to 29,216,313 equity shares by True North Fund VI LLP.

Federal Bank will continue to own more than 51 per cent of the outstanding share capital post the completion of this offering.

The company proposes to utilise the net proceeds from the fresh issue towards augmenting its Tier – I capital base to meet its future capital requirements arising out of the growth of business and assets.

FedFina is a retail-focused NBFC and operates a “twin engine” business model, with two complementary products — gold loans and instalment loans to MSMEs and emerging self-employed individuals.

The company believes that its long operating history, track record, management expertise and the Federal Bank brand have enabled it to establish a competitive position in the market.

ICICI Securities, Equirus Capital, IIFL Securities and JM Financial are the book running lead managers to the issue.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment