True North Fund VI Set to Exit Fedbank Financial Services via Block Deal
True North Fund VI, a pre-IPO investor in Fedbank Financial Services Ltd (Fedfina), is preparing to sell its entire 8.6% stake through a block deal. Investment bankers have been appointed for the transaction. True North had previously reduced its holding during Fedfina's IPO in November 2023. Fedfina, backed by Federal Bank, is an NBFC focusing on MSME loans, self-employed individuals, and retail customers. Specific details about the deal structure, pricing, and potential buyers are yet to be disclosed.
*this image is generated using AI for illustrative purposes only.
True North Fund VI, a pre-IPO investor in Fedbank Financial Services Ltd (Fedfina), is preparing to divest its entire 8.6% stake in the company through a block deal, marking a significant move in the non-banking financial sector.
Key Details of the Planned Exit
| Aspect | Details |
|---|---|
| Seller | True North Fund VI |
| Company | Fedbank Financial Services Ltd (Fedfina) |
| Stake to be Sold | 8.6% |
| Method of Sale | Block Deal |
| Current Status | Investment bankers appointed |
Background of True North's Investment
True North's involvement with Fedbank Financial Services dates back to its pre-IPO phase. The fund had previously reduced its holding during Fedfina's initial public offering in November 2023. This upcoming block deal represents True North's strategy to fully exit its remaining investment in the company.
About Fedbank Financial Services
Fedbank Financial Services, backed by Federal Bank, operates as a non-banking financial company (NBFC). The company's primary focus includes:
- Providing loans to Micro, Small, and Medium Enterprises (MSMEs)
- Serving emerging self-employed individuals
- Offering financial services to retail customers
Transaction Details
While the news of the planned exit has been confirmed, several crucial aspects of the deal remain undisclosed:
- Specific structure of the block deal
- Pricing details
- Identity of potential buyers
The appointment of investment bankers suggests that the process is in its early stages, with more details expected to emerge as the transaction progresses.
This move by True North Fund VI may impact the ownership structure of Fedbank Financial Services and could be of interest to investors watching the NBFC sector. As more information becomes available, it will provide further insights into the valuation of Fedfina and the market appetite for its shares.
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