The IPO will be undertaken by way of fresh issue and offer for sale, subject to market conditions, receipt of applicable approvals including that of Securities and Exchange Board of India (SEBI) and other considerations.

The size of the IPO, portion of offer for sale, price and other details with respect to the proposed IPO by FedFina will be informed in due course after finalisation of the same in consultation with the book running lead managers.

"Post undertaking the proposed IPO, FedFina would continue to be a subsidiary of our bank,” Federal Bank said in a statement.

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1,366 branches and 1,920 ATMs/recyclers as on 30 June 2023.

The private bank's standalone net profit jumped 42.13% to Rs 853.74 crore on 41.05% increase in total income to Rs 5,756.94 in Q1 FY24 over Q1 FY23.

The scrip rose 0.04% to currently trade at Rs 132.60 on the BSE.