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Business News/ Markets / Ipo/  Fedbank Financial Services IPO: GMP, review, other details. Apply or not?
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Fedbank Financial Services IPO: GMP, review, other details. Apply or not?

Fedbank Financial Services IPO opens today and Fedbank Financial Services IPO GMP today is ₹5, according to investorgain.com

Fedbank Financial Services IPO date: The public issue has opened today and it will remain open till Friday this week. (Photo: Company website)Premium
Fedbank Financial Services IPO date: The public issue has opened today and it will remain open till Friday this week. (Photo: Company website)

Fedbank Financial Services IPO opens today: The initial public offering (IPO) of Fedbank Financial Services Ltd has hit primary market today and it will remain open for bidding till 24th November 2023. This means Fedbank Financial Services IPO opens today and it will remain open for bidders till Friday this week. The NBFC has fixed Fedbank Financial Services IPO price at 133 to 140 per equity share. The NBFC aims to raise 1,092.26 crore from its initial public offer and it is proposed for listing on both BSE and NSE.

Meanwhile grey market is signaling muted trend on Fedbank Financial Services IPO. According to investorgain.com, shares of Fedbank Financial Services Ltd are available at a premium of 5 in grey market today.

Also Read: Fedbank Financial Services shares worth 329.99 crore gets allotted to investors ahead of IPO

Important Fedbank Financial Services IPO details

1] Fedbank Financial Services IPO GMP: Shares of the NBFC are available at a premium of 5 in grey market today.

2] Fedbank Financial Services IPO date: The public issue has opened today and it will remain open till Friday this week.

3] Fedbank Financial Services IPO price: The NBFC has fixed price band of the public issue at 133 to 140 per equity share.

4] Fedbank Financial Services IPO size: The company aims to raise 1,092.26 crore from its initial offer out of which 600.77 crore is aimed via issuance of fresh shares.

5] Fedbank Financial Services IPO lot size: A bidder will be able to apply in lots and one lot of the issue comprises 107 company shares.

6] Fedbank Financial Services IPO investment limit: A retail investor would require at least 14,980 ( 140 x 107) to apply for this public issue.

7] Fedbank Financial Services IPO allotment date: As per T+3 schedule, most likely Fedbank Financial Services IPO allotment date is 27th November 2023.

8] Fedbank Financial Services IPO registrar: Link Intime India Private Ltd has been appointed as official registrar of the public issue.

9] Fedbank Financial Services IPO listing date: The public issue is proposed for listing on BSE and NSE and likely date for share listing is 29th November 2023.

Also Read: Fedfina IPO: Fedbank Financial Services raises 325 crore from anchor investors ahead of IPO

Fedbank Financial Services IPO: Apply or not?

10] Fedbank Financial Services IPO review: Advising investors to apply for the IPO, Shreyansh Shah, Research Analyst at StoxBox said, "Fedbank Financial Services Ltd. (FSSL) has logged the third fastest AUM growth amongst NBFC peer set in India, with a three-year CAGR of 33% during FY20-23 period. FFSL has also marked steady growth in its top and bottom lines for FY21-23. Moreover, the NBFC has an effective underwriting capability due to its experienced underwriting team and established processes which is likely to keep asset quality issues at bay going forward. On the valuation front, the issue is valued at a P/BV of 3.3x on the upper price band based on the FY23 book value. With most of the positives seemingly priced in, we advise investors to subscribe to the issue for the benefit of listing gains."

Also Read: Fedbank Financial Services IPO opens on November 22, price band set at 133-140 apiece

Speaking on Fedbank Financial Services IPO, Arun Kejriwal, Founder at Kejriwal Research and Investment Services said, "Fedbank Financial Services Limited caters to the MSME and the emerging self-employed individuals. They provide business loans, gold loans and housing loans whether through mortgage or loan against property. The NBFC is promoted by Federal Bank and has True North as a strategic PE Investor who invested in the company some five years ago.

Calling Fedbank Financial Services IPO least attractive among all five mainboard IPOs available for bidders today, Kejwirwal went on to add that the NBFC has reported an EPS of 5.59 for the year ended March 23. The PE for the share based on these earnings is 23.79-25.04. The NAV of the NBFC is 42.11 prior to the issue. Based on this the price to book is 3.32. He said that valuation looks a tad expensive and this would get accentuated as the BFSI space continues to reel under selling pressure on account of the risk weightage that RBI has changed for consumer loans. The valuations in light of the new developments make the bank that much more expensive and considering the choice of four other issues on similar dates, make this a least preferred option.

Also Read: Federal Bank arm Fedfina files papers with SEBI for IPO

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 22 Nov 2023, 08:22 AM IST
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