Fedbank Financial Services Limited IPO To Open On Wednesday, November 22, 2023

·         Price Band fixed at Rs  133 to Rs  140 per Equity Share of face value of Rs  10 each (“Equity Share”) Employee discount of Rs 10 per Equity Share;

·         The Floor Price is 13.30 times and the Cap Price is 14.00 times the face value of the Equity Shares;

·         Bid/ Offer will open on Wednesday, November 22, 2023 and close on Friday, November, 24, 2023. The Anchor Investor Bidding Date shall be Tuesday, November 21, 2023;

·       Bids can be made for a minimum of 107 Equity Shares and in multiples of 107 Equity Shares thereafter;

·       RHP Link:

https://www.icicisecurities.com/Upload/ArticleAttachments/Fedbank%20Financial%20Services%20Limited%20-%20RHP.pdf

Fedbank Financial Services Limited (The “Company”), shall open its initial public offering of Equity Shares on Wednesday, November 22, 2023. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to ? 600 crore (“Fresh Issue”) and an offer for sale up to 35,161,723 Equity Shares by selling shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”).

 The Anchor Investor Bidding Date shall be Tuesday, November 21 2023.  The Offer will open on Wednesday, November 22, 2023 for subscription and will close on Friday, November 24, 2023.

 The Price Band of the Offer has been fixed at Rs  133 to Rs  140 per Equity Share. Bids can be made for a minimum of 107 Equity Shares and in multiples of 107 Equity Shares thereafter. The offer include reservation of upto Rs  10 crore for Employees at a discount of Rs  10 per equity share.

 The Company proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting Company’s Tier – I capital base to meet Company’s future capital requirements, arising out of the growth of its business and assets. Further, a portion of the proceeds from the Fresh Issue will be used towards meeting Offer Expenses.

 The Offer for Sale comprises of up to 5,474,670 Equity Shares by The Federal Bank Limited (“The Promoter”) and up to 29,687,053 True North Fund VI LLP (“The Investor Selling Shareholder”)

The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the Stock Exchanges being BSE Limited (“BSE”) and National Stock   Exchange of India Limited (“NSE”). For the purposes of the Offer, the Designated Stock Exchange shall be National Stock Exchange of India Limited.

The Offer includes a reservation aggregating up to Rs  10 crore for subscription by Eligible Employee (The “Employee Reservation Portion”) and a discount of up to Rs 10 per shares of the offer price to eligible employee bidding in the employee reservation portion. (“Employee Discount”)

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.

Further, 5% of the Net QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders of which (a) one third shall be reserved for applicants with application size of more than Rs 200,000 and up to Rs 1,000,000; and (b) two third shall be reserved for applicants with application size of more than Rs 1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.

Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID in case of UPI Bidders (defined hereinafter), in which the corresponding Bid Amounts will be blocked by the SCSBs to participate in the Offer. Anchor Investors are not permitted to participate in the Offer through the ASBA process. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. For details, see “Offer Procedure” on page 465.

ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.