Announced Tue, 6 Jan · 16:22 IST

Fedbank Financial Services Limited has informed the Exchange regarding Allotment of 20,000 Senior, Secured, Listed, Rated, Redeemable Non-Convertible Debentures having a face value of Rs. 1,00,000 each, of the aggregate nominal value of up to Rs. 200,00,00,000 on private placement basis to one or more prospective eligible investors.

Fund Raising View source PDF

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AI summary

Fedbank Financial Services has allotted 20,000 senior, secured, listed, rated, redeemable non-convertible debentures (NCDs) with a face value of Rs. 1,00,000 each, raising up to Rs. 200 crore on a private placement basis. The NCDs carry a coupon rate of 7.29% per annum, paid quarterly, with a 36-month tenure maturing on January 5, 2029. Principal will be redeemed in 8 quarterly instalments starting after 15 months from allotment, and the NCDs will be listed on BSE, secured by a first-ranking pari-passu charge over loan receivables. Separately, 12,700 equity shares of Rs. 10 each were allotted to employees under the ESOP 2018 scheme following stock option exercises. The paid-up share capital rose marginally to Rs. 3,74,08,95,000 consisting of 37,40,89,500 equity shares. This allotment is part of a broader board-approved plan to raise up to Rs. 2,500 crore through NCDs in multiple tranches.

Likely market impact

The Rs. 200 crore NCD raise expands Fedbank Financial's borrowing capacity to fund loan growth, with a moderate 7.29% coupon suggesting favourable borrowing costs for an NBFC. The ESOP allotment is minor and dilution is negligible, so existing shareholders are largely unaffected.