Federal Bank rises 5% on news of 26% stake aquisition in Equirus Capital

The stock was up 5% at Rs 94.15 on the BSE in early morning trade after the private sector lender said that it will pick up 26% strategic stake in Equirus Capital, a financial services company.

Federal Bank was up 5% at Rs 94.15 on the BSE in early morning trade after the private sector lender said that it will pick up 26% strategic stake in Equirus Capital Pvt Ltd (ECPL), a financial services company. Bank did not disclose the deal value.

“The Board of Directors of Federal Bank has approved acquiring a strategic minority stake of 26% in ECPL subject to statutory and regulatory approvals and satisfactory completion of financial and legal due diligence,” Federal Bank and Equirus said in a joint press release.

The Investment rationale has been driven by the need