The Federal Bank Ltd’s retail-focused NBFC, Fedbank Financial Services, will launch its initial public offering (IPO) of equity shares on November 22, 2023, and it will close on Friday, November 24, 2023.
The IPO comprises a fresh issue of equity shares aggregating up to ₹600 crore (fresh issue) and an offer for sale (OFS) of up to 35,161,723 equity shares by selling shareholders.
The anchor investors will place bids on Tuesday, November 21, 2023. The price band of the offer has been fixed at ₹133 to ₹140 per equity share. Bids can be made for a minimum of 107 equity shares and in multiples of 107 thereafter. The offer includes a reservation of up to ₹10 crore for employees at a discount of ₹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.
The company proposes to utilise the net proceeds from the fresh issue towards augmenting its tier-1 capital base to meet future capital requirements, arising out of the growth of its business and assets. A portion of the proceeds from the fresh issue will be used towards meeting offer expenses.
The OFS comprises up to 5,474,670 shares by promoter The Federal Bank and up to 29,687,053 True North Fund VI LLP, which is the investor-selling shareholder.
The equity shares will be listed on the BSE and NSE. For the purposes of the offer, the designated stock exchange will be the NSE.
The offer also includes a reservation aggregating up to ₹10 crore for subscription by eligible employees and a discount of up to ₹10 per shares of the offer price to eligible employees.
The offer is being made through the book-building process wherein not more than 50% of the offer will be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs).
Further, 5% of the net QIB portion, excluding the anchor investor portion, will be available for allocation on a proportionate basis only to mutual funds. Not less than 15% of the offer will be available for allocation to non-institutional bidders.
ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.
The offer is being made through the book-building process wherein not more than 50% of the offer will be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs).
Further, 5% of the net QIB portion, excluding the anchor investor portion, will be available for allocation on a proportionate basis only to mutual funds. Not less than 15% of the offer will be available for allocation to non-institutional bidders.
ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.
Gandhar Oil Refinery (India) Ltd IPO
Another crucial IPO of Gandhar Oil Refinery (India) Ltd opens on Wednesday, November 22, 2023, and will close on November 24, 2023. Anchor investors can place bids on November 21, 2023. The price band of the offer has been fixed from ₹160 per equity share to ₹169 per equity share. Bids can be made for a minimum of 14,872 shares and in multiples of 88 thereafter.
The IPO comprises a fresh issue of up to ₹302 crore and an offer for sale of up to 11,756,910 shares by the selling shareholders. The selling shareholders include promoter Ramesh Babulal Parekh who will sell 2,250,000 equity shares.
The company says it intends to use the proceeds of the fresh issue for the investment in Texol by way of a loan for financing the repayment or pre-payment of a loan facility availed by Texol. It will also use funds for capital expenditure and funding of its working capital requirement.
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