Fedbank Financial Services is set to finalize the basis of allotment of its equity shares by Tuesday. Bidders, who will receive the allotment of equity shares will begin getting alerts, mails and messages for amount debit and others, who will not get the allotment will receive or revocation of the mandate by Wednesday, November 29.
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Fedbank Financial Services sold its IPO in the range of Rs 133-140 apiece with a lot size of 107 shares, which was open for bidding between November 22 and November 24. The Federal Bank promoter NBFC raised a total of Rs 1,092.26 crore via primary route, which include a fresh share sale of Rs 600.77 crore and an offer-for-sale (OFS) of up to 3,51,61,723 equity shares.
The issue was overall subscribed a strong only 2.20 times during the bidding process. The portion for qualified institutional bidders was subscribed a whopping 3.51 times, while the portion reserved for retail investors saw 1.82 times bidding. The allocation reserved for non-institutional investors booked 1.45 times during the three-day bidding process.
Despite the busy IPO season, the grey market premium (GMP) of Fedbank Financial Services has been totally wiped out after a dull interest from investors. Last heard, Fedbank Financial was not commanding any premium in the unofficial market, suggesting a listing at par for the counter. However, it was trading at a premium of Rs 5-10 apiece, when the price for the issue was announced.
ICICI Securities, BNP Paribas, Equirus Capital and JM Financial are the book running lead managers of the Fedbank Financial Services IPO, while Link Intime India Private Ltd is the registrar for the issue. Shares of Gandhar Oil will be listed on both BSE and NSE on Friday.
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Fedbank Financial Services is a shadow lender which provides gold loans, home Loans, loan against property (LAP) and business loan services. The retail-focused shadow lender has the second lowest cost of borrowing among the MSMEs, gold loan and related peer set in India in financial year 2023.
Majority of the brokerage firms tracking the issue had mostly mixed opinions on the issue as some suggested to subscribe to it citing strong hold in the existing markets, fair pricing and robust AUM growth. However, RBI’s latest guidelines on stricter norms for unsecured loans dented the sentiments for the issue.
Investors, who bid for the issue of Fedbank Financial Services, can check the allotment status on the BSE website’s IPO application check page. Check-in equity, under the issue type and select Fedbank Financial Services Limited in the dropbox; type-in the application number and add the PAN card number before checking-in at ‘I am not a Robot’ before hitting the submit.
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Allotment status can also be checked through the online portal of Link Intime India, the registrar to the issue. Visit the web portal of Link Intime and select the IPO of Fedbank Financial Services in the dropbox. Enter the either PAN Card number, Application Number or DP Client ID as selected tab and hit ‘search’ to get the allotment status for your application.
