India’s Federal Bank Ltd. may raise as much as Rs 2,000 crores ($242 million) in its non-banking financial company, according to Bloomberg. Fedbank Financial Services Ltd. is working with advisers on the potential stake sale. The offering could consist of new shares and existing ones from Federal Bank and private equity firm True North, which owns about one-fourth of the company, according to Bloomberg.

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FedFina, as the Mumbai-based lender is known, is seeking a valuation of about Rs. 5,000 crore in the stake sale and could launch its planned IPO as soon as 2024.

Considerations are ongoing and details of the sale such as size could change. A representative for True North declined to comment, while a representative for Federal Bank didn’t immediately respond to requests for comment.

Shares of Federal Bank fell about 1.4% on Tuesday as part of a broader global selloff of financial companies. The stock has declined about 8% this year, valuing the company at around $3.3 billion.

Acquiring an NBFC license in 2010, FedFina has more than 460 branches across the country, according to its website. It offers products including home loans, business loans and loans secured by gold and other property. The company filed a draft IPO prospectus in February 2022 to raise 9 billion rupees.

In an earlier interaction with CNBC TV18, Ashutosh Khajuria, Executive Director and CFO at Federal Bank said the bank is expected to grow 200-300 bps higher than the industry average, while gold remains a focus rea for the bank. In the gold loan segment, it is looking to identify new customer segments, launch gold teller machine Fedsafe gold and gold-backed credit cards to gain market share.

Additionally, the management expects high-teen growth in the bank’s balance sheet, spurred by a transformation in credit composition. The bank’s strategy is to enhance credit yield and margin with the help of the rise in unsecured credit composition.

The bank also plans to grow select high-margin businesses to enhance margins. This mainly includes credit segments like credit cards, personal loans, MSME, CV/CE, gold and MFI portfolios.