Fedbank Financial Services IPO GMP, detail analysis, price, review, share 2023

Fedbank Financial Services IPO description – Fedbank Financial Services limited  is coming up with its Initial public offering. The IPO will be open for subscription on  22nd  november 2023

 

Fedbank Financial Services IPO – Details

Fedbank IPO Dates 22 – 24 November 2023
Fedbank IPO Price INR 133 – 140 per share

(Employee discount – INR 10 per share)

Fresh issue INR 600 crore
Offer For Sale 35,161,723 shares (INR 467.65 – 492.26 crore)
Total IPO size INR 1,067.65 – 1,092.26 crore
Minimum bid (lot size) 107 shares (INR 14,980)
Face Value  INR 10 per share
Retail Allocation 35%
Listing On BSE, NSE

 

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Fedbank Financial Services IPO – Date Schedule

 

IPO Open Date 22 November 2023
IPO Close Date 24 November 2023
Basis of Allotment Date 30 November 2023
Initiation of Refund 01 December 2023
Credit of Shares to Demat Account 04 December 2023
IPO Listing Date 05 December 2023

 

Fedbank Financial Services IPO- about company 

 

Fedbank Financial Services Limited provides Gold Loans, Home Loans, Loan Against Property (LAP) and Business Loan Services.

Fedbank Financial Services is a retail focused non-banking finance company (“NBFC”) promoted by The Federal Bank Ltd. They have the 2nd lowest cost of borrowing among the micro, small and medium enterprises (“MSMEs”), gold loan and MSME & gold loan peer set in India in Fiscal 2023. As on March 31, 2023, they had the 3rd fastest AUM growth among NBFCs in the peer set in India with 3 Year CAGR of 33%
between Fiscals 2020 and 2023.

They are one among 5 private bank promoted NBFCs in India. They are the fastest growing gold loan NBFC in India among the peer set as of March 31, 2023. As on March 31, 2023, 85.98% of their total Loan Assets are secured against tangible assets, namely gold or customer’s property.

As of March 31, 2023, they covered 191 districts in 16 states and union territories in India through 575 branches. Their branches are located
instates, such as Andhra Pradesh (including Telangana) and Rajasthan.

They also have a “Phygital” doorstep model, a combination of digital and physical initiatives, for providing customized services to their customers across all of their products.

As on March 31, 2023, the AUM across their various products was 32.92% for gold loans, 25.23% for medium ticket LAP, 24.46% for small ticket LAP and housing loans and 16.03% for unsecured business loans.

 

Fedbank Financial Services IPO
Fedbank Financial Services IPO

 

Fedbank Financial Services IPO- industry overview 

 

Banks and NBFCs are the two key components of the Indian financial system. While banks hold a major share of the financial services market, NBFCs have emerged as an important player by serving customers in regions where traditional financial institutions have limited reach or those who do not have sufficient credit history or collateral records.

In the fiscal year 2023, the housing finance and gold loans sectors make up 46% and 12%, respectively, of India’s retail loans industry.

According to CRISIL MI&A’s estimates as of March 2023, the total value of loans provided by organized financiers such as banks and NBFCs is around ₹6.1 trillion, with NBFCs holding a 25% share of the market.

 

According to CRISIL MI&A, the credit growth of Non-Banking Financial Companies (NBFCs) is expected to be higher at 13-14% in Fiscal 2024, as compared to 12-14% expected for banking credit.

The projection for NBFC credit growth between Fiscal 2023 and Fiscal 2025 is 12%-14%. The growth is anticipated to be driven by the retail vertical, which includes housing, auto, and microfinance sectors.

 

 Fedbank Financial Services Financial Performance

 

  FY 2022 FY 2023 Q1 FY 2024
Revenue 821.89 1,110.17 341.24
Expenses 744.43 956.29 295.82
Net income 103.46 180.13 53.88
Margin (%) 12.59 16.23 15.79

Figures in INR Crores 

 

Fedbank Financial Services Valuations & Margins

 

FY 2021 FY 2022 FY 2023
EPS 2.18 3.31 5.59
PE ratio 23.79 – 25.04
RONW (%) 7.39 8.97 13.29
NAV 28.79 35.88 42.11
EBITDA (%) 63.42 63.70 68.19
Borrowings/Equity 5.18 4.35 5.26

 

 

Fedbank Offer News

 

 

Fedbank Financial Services IPO Competitive Strengths

 

  • Presence in large, underpenetrated markets with strong growth potential;
  • 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;
  • Well diversified funding profile with an advantage of lower cost of funds;
  • Technology driven company with scalable operating model.

 

 Object Of The Issue

 

  • Augmenting the company’s Tier I capital base to meet the company’s future capital requirements, arising from the growth of the business and assets.
  • Meeting offer expenses.

 

Fedbank Financial Services IPO GMP Today

 

IPO GMP Kostak Subject to Sauda
10

Fedbank Financial Services IPO Allotment Status

 

Fedbank Financial Services IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.

 

Fedbank Financial Services IPO Peer Comparison

 

S. No. Face Value Company Name PE
1 2 Aptus Value Housing 27.04
2 2 IIFL Finance 14.52
3 1 Five Star Business Finance 31.73
4 2 Manappuram Finance Limited 7.28
5 10 Muthoot Finance Limited 14.29

 

Fedbank Financial Services IPO – Lots Size & Price

 

Application

Lots Shares Amount
Retail (Min) 1 107 14,980
Retail (Max) 13 1391 1,94,740
S-HNI (Min) 14 1498 2,09,720
S-HNI (Max) 66 7062 9,88,680
B-HNI (Min) 67 7169 10,03,660

 

2023-10-13 (4)

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