Fedbank Financial Services IPO - Good or Bad | Page 1 (2024)

FAQs

Is Fedbank Financial Services IPO good or bad? ›

Fedbank Financial Services IPO Capital Market Rating

The Captial Market (CapitalMarket.com) rating for Fedbank Financial Services IPO is 44. Their analysis recommends Avoid, however active risk seekers can try for the IPO.

We believe that the company is fairly priced. Thus, we recommend a subscribe – long-term rating to the IPO," said Anand Rathi. About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

"Fedfina is uniquely positioned which aids in strong brand recall and relatively better borrowing costs which will be further aided by the recent credit ratings upgrades. Its asset quality also remains quite healthy given its focus on secured business and strong underwriting methods.

Fedbank Financial Services IPO is a main-board IPO of 78,073,810 equity shares of the face value of ₹10 aggregating up to ₹1,092.26 Crores. The issue is priced at ₹133 to ₹140 per share.

There are 15 analysts who have given it a strong buy rating & 8 analysts have given it a buy rating.

Is IPO investment a wise decision? Despite all the pros and cons, investing in IPOs can be an excellent way to add high-quality stocks to your portfolio. They may suffer from volatility in the short term; however, if your investment horizon is long enough, there is a high chance of getting lucrative returns.

While there are some benefits to this type of asset, there's no guarantee your bet on an IPO will pay off, particularly, if the company is not well established. Pros: Potential for significant long-term gains: Yes, there is a potential to make a handsome profit, but remember, it's not a sure thing.

Fedbank raised Rs 1,092.26 crore through the IPO, which comprised a fresh issuance of 4.29 crore shares worth Rs 600.77 crore and an offer-for-sale (OFS) of 3.51 crore shares worth Rs 492.26 crore at the upper end of the Rs 133-140 price band.

You can buy Federal Bank Ltd shares through a brokerage firm. ICICIdirect is a registered broker through which you can place orders to buy Federal Bank Ltd Share.

The intrinsic value of one FEDERALBNK stock under the Base Case scenario is 200.24 INR. Compared to the current market price of 165.7 INR, Federal Bank Ltd is Undervalued by 17%.

What is the ROE of Fedbank Financial Services? ›

As of 2024-05-01, the Intrinsic Value of Federal Bank Ltd (FEDERALBNK. NS) is 396.65 INR. This FEDERALBNK. NS valuation is based on the model Peter Lynch Fair Value.

At the upper price band company is valued at P/BV of 2.5 times with a market cap of Rs 5,165.1 crore post issue of equity shares, said Anand Rathi Research. "We believe that the issue is fairly priced and recommend 'subscribe for long term' rating to the IPO," he said.

While IPOs have been underpriced by more than 10% during the past two decades, we find that in a sample of more than 2,000 IPOs from 1980 to 1997, the median IPO was significantly overvalued at the offer price relative to valuations based on industry peer price multiples.

Fedbank Financial Services IPO is a book built issue of Rs 1,092.26 crores. The issue is a combination of fresh issue of 4.29 crore shares aggregating to Rs 600.77 crores and offer for sale of 3.52 crore shares aggregating to Rs 492.26 crores.

Newly public companies are often categorized as high risk and volatile, as they lack a proven record of operating in the public domain. According to Terry Sandven, chief equity strategist for U.S. Bank, financial results from investing in IPOs are mixed. “Not all IPOs are proven to be long-term winners,” he explains.

Goldman Sachs earned nearly $15 billion from its investment banking business, leading all peers in total mergers and acquisitions deals and IPOs. Other investment banks, including JPMorgan Chase (NYSE: JPM) and Morgan Stanley (NYSE: MS), also rode strong capital markets to record investment banking profits.

Federal Bank Share Price Target 2030 is predicted to remain between Rs 329 and Rs 237. What is the NSE Federal Bank Share Price Target 2024? Federal Bank Share Price Target 2024 is between Rs 173 and Rs 136.

The IPO price band is fixed at ₹133 to ₹140 Per Equity Share. The Fedbank Financial Services IPO to list on BSE and NSE.