Federal Bank subsidiary FedFina initiates IPO process

Private sector lender Federal Bank has said that it has plans to publicly list its subsidiary Fedbank Financial Services Limited (FedFina).

The Board of Directors of Fedbank Financial Services Limited, a non-deposit taking and systemically important non-banking finance company (NBFC), on Tuesday, January 11, 2022, approved initiating the process of an initial public offering ("IPO") by way of a fresh issue and offer for sale." This is subject to market conditions, receipt of applicable approvals including that of the Securities and Exchange Board of India ("SEBI") and other considerations.

Federal Bank in a regulatory filing at the stock exchanges said, "The size of the IPO, portion of an offer for sale (if any), price and other details with respect to the proposed IPO by FedFina will be determined in due course."

It further added, "Post undertaking the proposed IPO, FedFina would continue to be a subsidiary of our Bank."

Fedbank Financial Services Ltd (Fedfina) incorporated in 1995 is a non-banking finance company (NBFC) and it acquired receipt of its NBFC license in 2010. It has 520+ branches across the country. It caters to products like Gold Loan, Home Loan, Loan Against Property (LAP) and Business Loan. Fedbank Financial Services Limited is poised to emerge as a relevant player in the NBFC space.