Fedbank Financial Services has set aside shares worth Rs 10 crore for its employees, and they will have the opportunity to acquire these shares at a discount of Rs 10 compared to the final offer price. This is a common practice where companies allocate a portion of the shares in an IPO specifically for their employees, providing them with an incentive to participate in the offering.
Despite a slow start, the Fedbank Financial Services IPO gained momentum and was fully subscribed at 1.02 times on the morning of November 24, which marks the final day of subscription. Investors submitted bids for 5.68 crore shares against the total issue size of 5.6 crore shares.
In the Fedbank Financial Services IPO, retail investors exhibited strong interest by subscribing to 1.42 times their allocated quota of shares. Non-Institutional Investors (NIIs) subscribed to 66 percent of their allotted shares, and Qualified Institutional Buyers (QIBs) subscribed to 56 percent of the shares reserved for them. This reflects a diverse level of participation from different investor categories in the IPO.
Fedbank Financial Services has allocated Rs 10 crore worth of shares for its employees, providing them with a discount of Rs 10 compared to the final offer price. Notably, employees have subscribed to 91 percent of their allotted quota, indicating a substantial interest from the internal stakeholders in participating in the IPO.
Fedbank Financial Services aims to raise Rs 1,092.26 crore through its IPO. The offering consists of a fresh issuance of 4.29 crore shares, valued at Rs 600.77 crore, and an offer-for-sale (OFS) of 3.51 crore shares, amounting to Rs 492.26 crore. The price band for the IPO is set at Rs 133 to Rs 140 per share.
Fedbank Financial Services successfully raised Rs 324.68 crore through its anchor book on November 21. A total of 22 investors participated in the anchor book, including prominent names such as Societe Generale, Integrated Core Strategies, Marshall Wace Investment Strategies, Goldman Sachs, Segantii India Mauritius, Copthall Mauritius Investment, and Citigroup Global Markets. The anchor book serves as an indicator of investor confidence and interest ahead of the public offering.
Federal Bank Fedbank Financial Services (Fedfina) is a Mumbai-based non-banking financial company (NBFC) with a focus on the retail sector. It caters to Micro, Small, and Medium Enterprises (MSMEs) along with the emerging segment of self-employed individuals. Fedfina operates in 17 states and union territories, showcasing a widespread presence in the financial landscape. As an NBFC, it likely provides various financial products and services, including loans and other financial solutions, to meet the diverse needs of its target customer base.