 "Federal Bank gets board nod for Rs 148 cr rights issue subscription")
Private sector Federal Bank on Tuesday said its board has cleared Rs 148 crore-capital investment into subsidiary Fedbank Financial Services (FFSL) through a rights issue.
FFSL is a non-deposit-taking systemically important NBFC, which was set up in 1995 by the bank.
"We wish to inform that the board has approved an investment of Rs 148 crore in subsidiary- Fedbank Financial Services Limited (FFSL) through rights issue," Federal Bank said in a regulatory filing.
Objective of the rights issue is to infuse regulatory capital in the firm. This is more than 5 per cent of the post issue paid up capital of FFSL, Federal Bank said.
In 2020-21, the turnover of FFSL stood at Rs 698 crore. Asset size of the company stood at Rs 5,466.30 crore as on March 31, 2021.
The lender said it will complete the subscription under the rights issue at Rs 70 per share for a cash consideration within two months.
Federal Bank holds 74 per cent stake in the subsidiary.
Scrip of the bank traded at Rs 84.85 apiece on BSE, up by 3.92 per cent from previous close.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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