Fedfina IPO In Talks: Fed Bank’s NBFC To Join the Upcoming IPO List

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Fedfina IPO In Talks: Fed Bank’s NBFC To Join the Upcoming IPO List
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Private sector bank, Federal Bank (NS: FED ) Limited’s non-banking financial company (NBFC), Fedbank Financial Services Ltd, or Fedfina is allegedly in talks of public listing, as per reports.

The Kerala-based financial company is known to file its draft papers for IPO listing shortly. Sources privy to the matter have informed that the NBFC is working with ICICI Securities, JM Financial (NS: JMSH ), and Equirus Capital for the upcoming IPO.

The draft prospectus for the listing could be filed anytime between the end of the ongoing month or early next month.

If the IPO listing of Fedfina takes form, it would add to the sparsely populated list of bank-owned NBFCs currently traded in the Indian exchanges.

In 2018, the Mumbai-based equity player True North acquired a 26% stake in Fedfina for Rs 400 crore.

As per the Mint report, while the IPO will majorly be constituted of fresh issue of shares to push the company’s growth capital, Fedfina’s parent company Federal Bank and True North are likely to sell a portion of their stakes in the company during the public listing.

The initial public offer size could be as much as $100-150 million, states the report.

 

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