FedBank Financial Services Limited Files DRHP with SEBI.
Fedbank Financial Services Limited (“FFSL” or “The Company”), the fastest growing gold loan NBFC in India as of March 31, 2021 (Source: CRISIL Report), has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
Promoted by Federal Bank Ltd, FFSL, the company operate a “twin engine” business model, with two complementary products, namely gold loans and instalment loans to MSMEs and emerging self-employed individuals (“ESEIs”).
The Company plans to raise funds through offer of equity shares of face value of Rs. 10 each. The offer consist of fresh issue aggregating up to Rs. 9,000 million (The “Fresh Issue”) and an Offer for Sale aggregating up to 45,714,286 equity shares by “Promoter Selling Shareholder” and “Investor Selling Shareholder” (The “Offer for Sale”).
The offer for sale up to 45,714,286 equity shares comprises of up to 16,497,973 equity shares by The Federal Bank Limited (“Promoter Selling Shareholder”) and up to 29,216,313 equity shares by True North Fund VI LLP (“Investor Selling Shareholder”).
Company proposes to utilize the net proceeds from the fresh issue towards augmenting its company’s Tier – I capital base to meet its future capital requirements, arising out of the growth of business and assets.
ICICI Securities Limited, Equirus Capital Private Limited, IIFL Securities Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.
Federal Bank will continue to own more than 51% of the outstanding share capital post the completion of this Offering. The Company believes that its long operating history, track record, management expertise and the “Federal Bank” brand have enabled it to establish a competitive position in the markets it serve and create trust among its customers, lenders, regulators and investors.