Federal Bank arm FedFina files draft papers with Sebi for IPO

FedFina proposes to utilise the net proceeds from the fresh issue towards augmenting Tier–I capital base to meet its future capital requirements, arising out of the growth of business and assets. A part of the proceeds will also be used for meeting offer expenses.

"Yes, the re-filing was done this week. The fresh issue portion is around Rs 750 crore and there is also an OFS component. Private equity investor True North and parent Federal Bank may sell stakes," multiple people in the know told Moneycontrol.

The NBFC arm of Federal Bank had filed its draft papers with Sebi last year for an IPO. But the plans were aborted due to unfavourable market conditions and later, the regulatory approval for the listing lapsed.

Earlier on July 18, the board of directors of Federal Bank gave the nod again for an IPO. After the IPO, FedFina would continue to be a subsidiary of Federal Bank. The parent holds a 74 percent stake.

FedFina and the selling shareholders may, in consultation with the book-running lead managers, consider a private placement of specified securities, or through such other route, of up to 20 percent of the fresh issue for cash consideration aggregating up to Rs 150 crore prior to a filing of the draft papers.

If such pre-IPO placement is undertaken, the size of the issue is expected to be reduced.

ICICI Securities, BNP Paribas, Equirus Capital Private Ltd, and JM Financial are the book-running lead managers, while Link Intime India Private Limited is the registrar for the offer.

The equity shares are proposed to be listed on both the exchanges BSE and NSE.