Non-Banking Finance Company (NBFC) Fedbank Financial Services has fixed the price band for its initial public offer (IPO) at ₹133-140 per equity share, with a lot size of 107 equity shares. The anchor book will open on Tuesday, November 21.

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The IPO of the South-based Federal Bank subsidiary will open for public subscription on November 22. The issue will remain open for public bidding till November 24.

The grey market premium (GMP) for Fedbank Financial Services remained nil. The grey market is an unofficial market wherein the IPO shares can be bought and sold till the listing.

The offer includes a fresh issuance of shares worth ₹600 crore by the company, and an offer-for-sale (OFS) of 3.5 crore equity shares. Under the OFS, Federal Bank will offload 54.74 lakh shares, and the remaining shares will be sold by investor True North Fund VI LLP, the private equity fund.

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The private sector bank owns 74% of the NBFC arm at present. True North Fund VI LLP holds 25.3% shares in Fedbank Financial Services.

Considering the upper end of the price band, Fedbank Financial Services may raise ₹1,092 crore via the IPO route.

The NBFC has set aside shares worth ₹10 crore for its employees, who will get a discount of ₹10 per share during the IPO. About 50% of the IPO is reserved for qualified institutional bidders, 15% for non-institutional investors and the rest 35% for retail investors.

Net proceeds from the fresh issue will be used to augmenting Fedbank Financial's Tier-I capital base to meet the company's future capital requirements, arising from the growth of the business and assets.

ICICI Securities, BNP Paribas, Equirus Capital and JM Financial are the book-running lead managers to the issue, while Link Intime India Private Ltd is the registrar. The equity shares of the company will be listed on both the BSE and the NSE.

Besides Fedbank Financial, public offers of Indian Renewable Energy Development Agency , Tata Technologies, Gandhar Oil Refinery, and Flair Writing Industries will also be opening next week.

First Published:Nov 17, 2023 8:59 AM IST