Fedbank Financial Services Ltd IPO

Its may face asset-liability mismatches, which could affect its liquidity and consequently may adversely affect the bank's operations and profitability.

The company has had negative cash flows in the past and may continue to have negative cash flows in the future.

As on June 30, 2023, 93.65% of its gross AUM was located in Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Karnataka, Puducherry and Delhi. Accordingly, our operations are concentrated in six states and two union territories and any adverse developments in these regions could have an adverse effect on its business and results of operations.

Because its handle high volumes of cash and gold jewelry in a dispersed network of branches, the company is exposed to operational risks, including employee negligence, fraud, petty theft, burglary and embezzlement, which could harm its results of operations and financial position.

Its inability to maintain its capital adequacy ratio could adversely affect the company's business, results of operations and its financial performance.

Its inability to meet its obligations, including financial and other covenants under its debt financing arrangements could adversely affect its business, results of operations and financial condition.

Its business depends on a well-regarded and widely known brand, as well as the brand and reputation of its Promoter, Federal Bank, and the Federal Bank group entities, and any failure to maintain, protect and enhance its brand would harm its business.

Any deterioration in the performance of any pool of receivables securitized and assigned to banks and other institutions may adversely impact its financial performance.

There are pending litigations against the Company and its Promoter. Any adverse decision in such proceedings may render it/them liable to liabilities/penalties and may adversely affect its business, cash flows and reputation.

The company has entered into, and will continue to enter into, related party transactions which may potentially involve conflicts of interest.