Federal Bank launches Rs 2000 cr share sale to institutions

Indian private sector lender Federal Bank Ltd has launched a share sale to raise Rs 2,000 crore, with an option to increase the amount by Rs 500 crore, according to a deal term sheet.

Federal Bank said in a regulatory filing on Wednesday that it had launched a so-called qualified institutions placement of shares but did not give details.

The bank is selling new shares in a price range of Rs 111.50 to Rs 116.70, equivalent to a 4.5 per cent discount to the stock's close on Wednesday at the bottom of the range.

Citi, Deutsche Bank, IIFL Holdings and Kotak Mahindra Capital are the banks on the deal.