You are here: Home » PTI Stories » National » News
Business Standard

Fedfina board okays 17.40% divestment to True North Fund VI for Rs 168.60 cr

Business Finance

Press Trust of India  |  New Delhi 

Private sector lender Federal Bank Thursday said the board of its NBFC arm Fedfina has approved divesting 17.40 per cent shares of the company to True North Fund VI LLP for a total consideration of Rs 168.60 crore.

"The board of Fedbank Financial Services (Fedfina), subsidiary company of the bank, had in its meeting dated November 13, 2018 approved allotment of 40,042,500 equity shares, with face value of Rs 10 each, corresponding to 17.40 per cent of the share capital of Fedfina, to True North Fund VI LLP on preferential basis for a total consideration of Rs 168.60 crore," Federal Bank said in a regulatory filing.

Last month, Federal Bank had received approval from the Reserve Bank to sell up to 45 per cent stake in non-banking financial company (NBFC) arm Fedfina to private equity firm True North.

Earlier in May, the board of the private sector bank had approved 26 per cent strategic investment by True North in Fedfina.

True North can further acquire additional equity shares of Fedbank Financial Services Ltd, constituting up to 45 per cent of the share capital in the company, Federal Bank said in a regulatory filing.

Fedfina is a fully-owned subsidiary of Federal Bank.

The arm is engaged in providing loans to individual and corporate borrowers, against the security of assets like gold and real estate property, for meeting personal and business expense and investment needs.

Shares of Federal Bank were trading 0.76 per cent lower at Rs 77.90 apiece on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, November 15 2018. 12:45 IST