Federal Bank subsidiary FedFina initiates IPO process

0
4

Federal Bank said in a regulatory filing that its subsidiary Fedbank Financial Services (FedFina) has  initiated the process for an initial public offer (IPO).Fedfina acquired its NBFC license in 2010 and has around 520 branches catering  to products like gold loan, home loan, loan against property (LAP) and business loan.

The bank holds 74% shares in the NBFC.Assets under management of the NBFC  for 2020-21 stands at Rs 4628 crore,with a total revenue of Rs 628 crore and a net profit of Rs 62 crore.

Federal Bank said in the filing that board of directors of FedFina, in its meeting held on Tuesday, has approved initiating the process of an IPO by way of fresh issue and offer for sale, subject to market conditions, receipt of applicable approvals including that of Sebi and other considerations.

It also added that post undertaking the proposed IPO, FedFina would continue to be a subsidiary of the Bank.