Fedbank Fin. Ser IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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FEDBANK FIN. SER

CMP

128.25

-0.75 (-0.58%)

  • DRHP
₹140

Offer Price

₹ 1,092.26 Cr

Issue Size

₹ 14,980

Min Investment

2.20x

Times Subscribed

107

Lot size

Time Line

  • 22
    Nov 2023
    Open
  • 24
    Nov 2023
    Close
  • 28
    Nov 2023
    Finalisation of Basis of Allotment
  • 29
    Nov 2023
    Initiation of Refunds
  • 29
    Nov 2023
    Transfer of Shares to Demat Account
  • 30
    Nov 2023
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • 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

Products & Services

  • Gold Loans and instalment loans to MSMEs and emerging self-employed individuals ("ESEIs")

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;

Risks

  • 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.

  • Because its handle high volumes of cash and gold jewelry in a dispersed network of branches, the company is exposed to operational risks, including employee negligence, fraud, petty theft, burglary and embezzlement, which could harm its results of operations and financial position.

  • Its inability to maintain its capital adequacy ratio could adversely affect the company`s business, results of operations and its financial performance.

Company Promoters

Promoters Holding

Issue For IPO
0.84%
Pre Holding

72.28%

Post Holding

71.44%

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 869.32 (25.70%) 1,180.00 (35.70%) 13.29 (-)
Gross Profit 869.32 (25.70%) 1,180.00 (35.70%) 13.29 (-)
Net Income 869.32 (25.70%) 1,180.00 (35.70%) 13.29 (-)
Assets 869.32 (25.70%) 1,180.00 (35.70%) 13.29 (-)
Liabilities 869.32 (25.70%) 1,180.00 (35.70%) 13.29 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Fedbank Financial Services Ltd 1,180.00 180.13 8,625.55 7,269.87 13.29 0.00 42.11 0.55 0.84
AAVAS Financiers Ltd 1,608.76 429.64 13,409.61 13,409.61 13.14 54.26 413.57 3.20 3.01
Aptus Value Housing Finance India Ltd 1,093.36 503.01 7,176.28 7,176.28 15.06 10.08 67.05 7.00 1.13
Five Star Business Finance Ltd 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IIFL Finance Ltd 8,258.85 1,500.30 53,001.32 53,001.32 16.68 39.18 268.16 2.83 4.40
Manappuram Finance Ltd 6,684.04 1,495.98 39,504.13 39,504.13 15.51 17.72 114.19 3.78 2.95
Muthoot Finance Ltd 11,897.66 3,612.30 80,148.92 80,148.92 16.67 89.98 551.82 4.50 2.57
Shriram City Union Finance Ltd 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
SBFC Finance Ltd 732.81 149.74 5,746.44 5,746.44 8.66 1.62 19.42 2.60 2.16

Book Running Managers

  • ICICI Securities Ltd
  • Equirus Capital Pvt Ltd
  • BNP Paribas
  • JM Financial Ltd

Registrar & Transfer Agent

Link Intime India Pvt Ltd

C-101 247 Park,
L B S Marg,
Vikhroli West - Mumbai-400083
Phone : 91-22-49186000 Fax: 91-22-49186060

Company Contact Information

Kanakia Wall Street A Wing,
5th Flr Unit No 511 Andheri(E),
Mumbai - 400093
Phone : 91-22-6852 0601 Email : cs@fedfina.com www.fedfina.com

Offer Related Information

Initial public offer of 78,073,810* equity shares of face value of Rs. 10 each ("Equity Shares") of Fedbank Financial Services Limited ("Company" or "Issuer") for cash at a price of Rs. 140 per equity share (including a share premium of Rs. 130 per equity share) ("Offer Price") aggregating to Rs. 1092.26*^ crores (the "Offer") comprising a fresh issue of 42,912,087* equity shares aggregating to Rs. 6,00.00*^ crores (the "Fresh Issue") and an offer for sale of 35,161,723* equity shares... More

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