Fedbank Financial Services board to consider ₹2,500 crore debt fundraising
Key Takeaways
- •Fedbank Financial Services will consider a debt fundraising of up to ₹2,500 crore.
- •The company is a non-banking financial company majority-owned by Federal Bank.
- •Fedfina’s lending is largely secured and includes gold loans, mortgage-backed business loans and home loans.
- •The company has not disclosed the instrument, tenure or use of the proposed borrowing.
- •Its shares closed at ₹149.50 on the BSE, below the previous close but above the IPO price of ₹64.
Fedbank Financial Services board to consider ₹2,500 crore debt fundraising
Fedbank Financial Services Ltd said its board will consider a fundraise of up to ₹2,500 crore through debt.
Fedbank Financial Services, commonly known as Fedfina, is a non-banking financial company (NBFC) majority-owned by private sector lender Federal Bank. Its lending is largely secured, built around gold loans, mortgage-backed business loans to small enterprises, and home loans. The company listed on the stock exchanges in November 2023 through an initial public offering priced at ₹64 a share.
For NBFCs like Fedfina, which do not accept public deposits and lend out of borrowed funds, debt is the primary source of funding, typically raised through instruments such as non-convertible debentures and bank term loans. The company has not specified the instrument, tenure or use of the proposed ₹2,500 crore borrowing; such details generally follow a board's approval.
Shares of Fedbank Financial Services Ltd ended at ₹149.50 on the BSE, down ₹1.15, or 0.76%. The stock trades well above its IPO price of ₹64.
