Fedbank Financial Services (FBFS), a non-banking financial company (NBFC), aims to raise up to Rs 600 crore through fresh equity and Rs 492 crore via an offer for sale. Post-IPO, the promoter Federal Bank's stake will decrease from 72.3% to 62.4%, and True North Fund, a private equity firm, will reduce its stake from 25.4% to 14.4%. FBFS, established in 1995, offers loans against property, gold loans, and unsecured business loans. Despite the competition and RBI's increased risk weights, it's suitable for long-term investors with a higher risk appetite. AUM grew 37% between FY21 and FY23, with 86% secured loans. FBFS, a lender with 584 branches across 17 states and union territories, experienced significant growth in FY23, with over 60% of customers active and 32% of transactions executed on its digital portal. The lender's financials showed a 70.9% increase in net profit, 2.3% return on assets, and 14.4% return on equity, making it attractively valued compared to peers.