Federal Bank subsidiary Fedbank Financial Services Ltd (FedFina) has filed preliminary papers with Sebi for its initial public offering (IPO).

The draft red herring prospectus (DRHP) was filed with the capital markets regulator on February 19, 2022, Federal Bank said in a regulatory filing on Sunday.

“Our subsidiary Fedbank Financial Services has filed its draft red herring prospectus with Sebi for the proposed IPO of its equity shares on February 19, 2022,” it said.

The IPO comprises a fresh issue of equity shares and offer for sale by Federal Bank and True North Fund VI LLP.

“FedFina is proposing to undertake the IPO...comprising a fresh issue of equity shares by FedFina aggregating up to Rs 9,000 million

(Rs 900 crore) (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,” Federal Bank said.

The private sector bank said the offer includes a reservation for subscription by eligible employees of Federal Bank and FedFina and the bank’s shareholders.

The offer is subject to receipt of requisite approvals, market conditions and other considerations, it added.

As of February 19, 2022, Federal Bank held 23,56,85,332 equity shares aggregating to 73.31 per cent of the issued, subscribed and paid-up share capital of FedFina.

FedFina had total revenues of Rs 697.72 crore in FY21, with net profit of Rs 61.68 crore.

The company’s net worth as on March 31, 2021 was Rs 834.73 crore.

Post the proposed IPO, FedFina would continue to be a subsidiary of Federal Bank, the lender said.

The non-banking financial company (NBFC) offers medium term and small ticket loans against property (LAP), business loans, as well as gold loans. It has 507 branches across 15 states and union territories (UTs) in India.