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FEDBANK FINANCIAL SERVICES LIMITED INITIAL PUBLIC OFFERING TO OPEN ON WEDNESDAY, NOVEMBER 22, 2023

(L to R) Mr. Anil Kothuri, MD & CEO, Fedbank Financial Services Limited and Mr. C V Ganesh, Chief Financial Officer, Fedbank Financial Services Limited addressing the gathering at the IPO Conference.

Mr. Anil Kothuri, MD & CEO, Fedbank Financial Services Limited at the press conference in connection to their Initial public Offer (IPO).

National, November 17, 2023: Fedbank Financial Services Limited (The “Company”), shall open its initial public offering of Equity Shares on Wednesday, November 22, 2023. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to ₹ 600 crore (“Fresh Issue”) and an offer for sale up to 35,161,723 Equity Shares by selling shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”).
The Anchor Investor Bidding Date shall be Tuesday, November 21 2023. The Offer will open on Wednesday, November 22, 2023 for subscription and will close on Friday, November 24, 2023.
The Price Band of the Offer has been fixed at ₹ 133 to ₹ 140 per Equity Share. Bids can be made for a minimum of 107 Equity Shares and in multiples of 107 Equity Shares thereafter. The offer include reservation of upto ₹ 10 crore for Employees at a discount of ₹ 10 per equity share.
The Company proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting Company’s Tier – I capital base to meet Company’s future capital requirements, arising out of the growth of its business and assets. Further, a portion of the proceeds from the Fresh Issue will be used towards meeting Offer Expenses.
The Offer for Sale comprises of up to 5,474,670 Equity Shares by The Federal Bank Limited (“The Promoter”) and up to 29,687,053 True North Fund VI LLP (“The Investor Selling Shareholder”)
The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the Stock Exchanges being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, the Designated Stock Exchange shall be National Stock Exchange of India Limited.

The Offer includes a reservation aggregating up to ₹ 10 crore for subscription by Eligible Employee (The “Employee Reservation Portion”) and a discount of up to ₹ 10 per shares of the offer price to eligible employee bidding in the employee reservation portion. (“Employee Discount”)
The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”), provided that our Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.
Further, 5% of the Net QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.
Further, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders of which (a) one third shall be reserved for applicants with application size of more than ₹200,000 and up to ₹1,000,000; and (b) two third shall be reserved for applicants with application size of more than ₹1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.
Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID in case of UPI Bidders (defined hereinafter), in which the corresponding Bid Amounts will be blocked by the SCSBs to participate in the Offer. Anchor Investors are not permitted to participate in the Offer through the ASBA process. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. For details, see “Offer Procedure” on page 465.
ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited and JM Financial Limited are the Book Running Lead Managers to the Issue.
All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.
Disclaimer:
FEDBANK FINANCIAL SERVICES LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to undertake an initial public offering of its Equity Shares and has filed the RHP with RoC on November 16, 2023 and thereafter with the Stock Exchanges. SEBI The RHP shall be available on the website of SEBI at www.sebi.gov.in, as well as on the websites of the Stock Exchanges i.e. BSE and NSE at www.bseindia.com and www.nseindia.com, respectively, the website of the Company at www.fedfina.com and is available on the websites of the BRLMs, i.e.ICICI Securities Limited, BNP Paribas, Equirus Capital Private Limited and JM Financial Limited at www.icicisecurities.com, www.bnpparibas.co.in, www.equirus.com and www.jmfl.com respectively. On page 27 of the RHP , Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to such risk, please see the section entitled “Risk Factors” . Potential investors should not rely on the Draft Red Herring Prospectus filed with SEBI for making any investment decision and instead should place reliance on the RHP. This announcement is not an offer of securities for sale in the United States or elsewhere. The Equity Shares offered in the Offer have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities law. Accordingly, the Equity Shares are only being offered and sold outside the United States to investors that are not U.S. Persons, nor persons acquiring for the account or benefit of U.S. Persons, in “offshore transactions” as defined in and in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales occur. There will be no offering of securities in the United States.

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