Fedfina expects to raise up to Rs 1,400 Cr through an IPO

By the end of 2023, Fedbank Financial Services plans to raise up to Rs 1,400 crore through an Initial Public Offering (IPO), according to a senior executive at its parent Federal Bank.

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The South-based bank’s Non-Banking Finance Company (NBFC) division re-filed its Draft Red Herring Prospectus for an IPO last week after the initial approval expired because tumultuous market conditions prevented it from proceeding.

“They (Fedfina) are looking at an IPO of somewhere in the Rs 1,200-1,400 crore range… We are looking to do something in the course of calendar 2023,” Federal Bank’s managing director and chief executive Shyam Srinivasan told PTI in an interaction. He said the NBFC arm is growing well and has adequate capital to take care of growth requirements till early 2024.

“Capital markets regulator SEBI will take some time to go through the papers and issuance can happen in the next 90-100 days,” he said.