Kerala-based Federal Bank Ltd is weighing a stake sale in its non-banking financial company Fedbank Financial Services Ltd (Fedfina) to raise as much as Rs 2,000 crore, said a report on Wednesday.
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Fedfina is working with advisers on the potential stake sale, reported Bloomberg quoting people familiar with the matter.
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The offering could consist of new shares and existing ones from Federal Bank and private equity firm True North, which owns about one-fourth of the company, the report added. Mumbai-based Fedfina is seeking a valuation of about Rs 5,000 crore in the stake sale and could launch its planned IPO sometime in 2024, the report said.
As on December 31, Federal Bank held 73.2% stake in Fedfina.
Fedbank Financial Services acquired receipt of its NBFC licence in 2010. The non-bank lender has more than 463 branches across India. It offers products like gold loans, home loans, loan against property, and business loans.
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At 1515 hours on Wednesday, Federal Bank’s scrip on BSE was trading 2.55% lower at Rs 126.35.
