FedFina Mumbai/UNI: Private sector lender Federal Bank on Sunday said its subsidiary Fedbank Financial Services (FedFina) has filed draft papers with market regulator SEBI to raise Rs 900 crore through initial public offer.
The IPO comprises fresh issue of Rs 900 crore and an offer for sale (OFS) of up to 4.57 crore shares by its existing shareholders and promoters, the bank said in a regulatory filing.
As per the DRHP filed by FedFina, the OFS comprises up to 1,64,97,973 equity shares by Federal Bank and up to 2,92,16,313 equity shares by True North Fund VI LLP.
Currently, Federal Bank holds 73.31 per cent of issued, subscribed and paid-up share capital of FedFina aggregating to neatly 23,56,85,332 equity shares.
According to the bank, FedFina will continue to be its subsidiary post the completion of the IPO as the bank will hold more 51 per cent of the outstanding share capital.
FedFina plans to utilize the proceeds from the fresh issue for augmenting its Tier – I capital base to meet its future capital requirements arising out of the growth of business and assets. ICICI Securities Equirus Capital, IIFL Securities and JM Financial are the book running lead managers to the issue.
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