True North exits FedFina with nearly 7% stake sale via block deal

Private equity firm True North has exited Fedbank Financial Services by selling its nearly 7 per cent stake to Nomura India Equity Fund through a block deal

Illustration: Binay Sinha

Subrata Panda

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Fedbank Financial (FedFina) Services on Tuesday said private equity firm True North has sold nearly 7 per cent of its stake through a block deal in the retail-focused finance company promoted by Federal Bank to Nomura Asset Management’s Nomura India Equity Fund (FPI). Shares of the finance company fell 1.22 per cent, even as the broader market declined nearly 2 per cent.

In an exchange filing, the company said, “…we have been informed by True North Fund VI LLP, a significant shareholder holding 25.7 million equity shares representing approximately 6.86 per cent of the paid-up equity share capital of the company as on date, that they have disposed of their entire stake in the company through a block deal on the Stock Exchange mechanism to Nomura India Equity Fund (managed by Nomura Asset Management- FPI).”

“Consequent to this transaction, True North Fund VI LLP's shareholding in the company stands at nil”, it added.

As of March 31, 2026, Federal Bank held nearly 61 per cent stake in the finance company, followed by True North Fund with a 7.3 per cent stake. Other major shareholders included Nuvama Wealth Management’s private investment arm with 2.7 per cent, Bandhan Mutual Fund with 2.2 per cent, and SBI Life Insurance with 2 per cent, among others.

FedFina reported a strong March quarter performance last month, with net profit rising 40.3 per cent year-on-year (Y-o-Y) to ₹100.5 crore, compared to ₹ 71.7 crore in the same period last year. Its net interest income grew 23 per cent Y-o-Y to ₹348.8 crore from ₹283.3 crore. The company's assets under management (AUM) increased 27.5 per cent Y-o-Y to ₹ 20,153 crore in Q4FY26.