IPO News: FedFina, a subsidiary of Federal Bank in preparation for bringing IPO, submitted documents with SEBI

The country’s IPO market is out. One after the other, many companies are bringing their initial public offering ie IPO. Now FedBank Financial Services Limited (FedFina), a subsidiary of Federal Bank, is also preparing to bring an IPO. The company is planning to raise funds through IPO. For this, the company has submitted documents to the market regulator Securities and Exchange Board of India (SEBI) on Saturday.

New shares will be issued under the IPO as well as an Offer for Sale (OFS) by Federal Bank and True North Fund VI LLP. According to the draft Red Herring Prospectus (DRHP), new shares worth Rs 900 crore will be issued under Fedfina’s IPO. Apart from this, 45,714,286 equity shares will be sold by the promoters and investors under the offer for sale (OFS).

As part of the OFS, 16,497,973 equity shares will be sold by Federal Bank and 29,216,313 equity shares by True North Fund VI LLP. At present, Federal Bank holds 73.31 per cent stake in Fedfina while True North Fund VI LLP holds 25.76 per cent.

Know about the company
In the year 2010, Fedfina got the license of Non-Banking Finance Company (NBFC). Presently the company has 463 branches across the country. The company offers Gold Loan, Home Loan, Loan Against Property and Business Loan. Fedfina’s net profit in the financial year 2020-21 was Rs 61.68 crore.