Fedbank Financial Services IPO subscribed 90 pc on day two of subscription

New Delhi, Nov 23 (PTI) The initial public offer of Fedbank Financial Services (Fedfina), a subsidiary of Federal Bank, got subscribed 90 per cent on the second day of subscription on Thursday.

The initial share sale received bids for 5,03,90,152 shares against 5,59,23,660 shares on offer, as per data available with the NSE.

The category for Retail Individual Investors (RIIs) received 1.25 times subscription while the quota for Qualified Institutional Buyers (QIBs) got subscribed 56 per cent. The portion for non-institutional investors received 52 per cent subscription.

The Initial Public Offer (IPO) has a fresh issue of up to Rs 600 crore and an offer for sale of up to 35,161,723 equity shares.

The price range for the offer is Rs 133-140 a share.

Fedbank Financial Services on Tuesday said it has collected Rs 325 crore from anchor investors. The public issue has a price band of Rs 133-140 per share.

The issue is a combination of a fresh issue of 4.29 crore shares aggregating to Rs 600.77 crore and an Offer For Sale (OFS) of 3.52 crore shares worth Rs 492.26 crore.

Under the OFS, Federal Bank will offload 1.65 crore shares and True North Fund VI LLP will divest 5.38 crore shares.

Fedfina proposes to utilise the net proceeds from the fresh issue towards augmenting the Tier-I capital base to meet its future capital requirements and offer expenses.

ICICI Securities, BNP Paribas, Equirus Capital and JM Financial are the book-running lead managers of the offer.

On Monday, Fedbank Financial Services raised Rs 330 crore in a pre-IPO placement round. PTI SUM SHW