The initial public offering (IPO) of Fedbank Financial Services, a non-banking financial company (NBFC) serving micro, small, and medium enterprises (MSMEs) and self-employed individuals, has garnered a subscription rate of 2.2 times. This level of interest comes despite a lukewarm response from the grey market. Qualified Institutional Buyers (QIBs) displayed significant confidence in the offering, with bids reaching 3.51 times their allotted share. Retail investors also showed keen interest, subscribing 1.82 times, while non-institutional investors participated at a lower rate of 1.45 times.
Investors who have applied for the IPO are poised to find out the status of their share allotment today, with the ability to check their application or PAN details on the Bombay Stock Exchange (BSE) or through the registrar, Link Intime India. Following the allotment process, shareholders are expected to see the equity shares credited to their demat accounts by tomorrow.
The commencement of trading for Fedbank's equity shares on stock exchanges is tentatively scheduled for Thursday, November 30. The IPO includes a fresh issue worth ₹600.77 crore and an offer-for-sale by Federal Bank and True North Fund VI LLP totaling ₹492.26 crore. The funds raised through this IPO are intended to strengthen the NBFC's Tier I capital to support future asset growth related to its business operations across various regions.
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