Federal Bank's subsidiary Fedbank Financial Services Limited ("FedFina") has filed its Draft Red Herring Prospectus ("DRHP") with SEBI for the proposed Initial Public Offering ("IPO") of its equity shares on February 19, 2022.
FedFina is proposing to undertake an initial public offering of equity shares of face value of Rs.10 each of FedFina ("Equity Shares" and such offering, the "Offer"), comprising a fresh issue of Equity Shares by FedFina aggregating up to Rs.9,000 million (the "Fresh Issue") and an offer for sale of up to 1,64,97,973 Equity Shares by our Bank and up to 2,92,16,313 Equity Shares by True North Fund VI LLP, in accordance with the Companies Act, 2013, and rules made thereunder, each as amended, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements), Regulations, 2018 as amended (the "SEBI ICDR Regulations") and other applicable laws at such price as may be determined in consultation with the book running lead managers to the Offer and through the book building process under SEBI ICDR Regulations.
In accordance with the provisions of SEBI ICDR Regulations, the Offer includes a reservation for subscription by eligible employees of our Bank and FedFina (as defined in the DRHP) and a reservation for subscription by our Bank's shareholders (as defined in the DRHP). The Offer is subject to receipt of requisite approvals, market conditions and other considerations.
Basis the annual report for Financial Year ended March 31, 2021, FedFina had: