Fedbank Financial Services disappoints on D-st debut; lists at 2% discount at Rs 138

Shares of Fedbank Financial Services Ltd (Fedfina) made a muted debut at Dalal Street on Thursday as the shadow lender was listed at Rs 137.75, a discount of 2 per cent, over its issue price Rs 140 on the BSE. The Federal Bank promoted entity was listed at a discount of more than 1 per cent at Rs 138 against the same issue price on National Stock Exchange (NSE).

Last heard, shares of Fedbank Financial Services were commanding no premium in the grey market, suggesting its listing at par on Dalal Street. However, its premium in the unofficial market stood close to Rs 5-10 when the issue was announced but low subscription dented the sentiments.

Fedbank Financial sold its primary offering in the fixed price range of Rs 133-140 apiece with a lot size of 107 equity shares. The issue was open for bidding between November 22 and November 24 to raise about Rs 1,092.26 crore, which included a fresh share sale of Rs 600.77 crore and an offer-for-sale (OFS) of up to 3,51,61,723 equity shares.

The issue was overall subscribed only 2.20 times during the bidding process. The portion for qualified institutional bidders was subscribed a whopping 3.51 times, while the portion reserved for retail investors saw 1.82 times bidding. The allocation reserved for non-institutional investors booked 1.45 times during the three-day bidding process.

Fedbank Financial Services is a shadow lender which provides gold loans, home Loans, loan against property (LAP) and business loan services. The retail-focused shadow lender has the second lowest cost of borrowing among the MSMEs, gold loan and related peer set in India in financial year 2023.
 

ICICI Securities, BNP Paribas, Equirus Capital and JM Financial are the book running lead managers of the Fedbank Financial Services IPO, while Link Intime India Private Ltd is the registrar for the issue.

Also read: IREDA shares zoom 115% from IPO issue price; log high turnover, volumes 

Also read: Stock recommendations for November 30, 2023: Gujarat Gas, Chambal Fertilisers and Quess Corp