Federal Bank rises after board OKs capital raise proposal worth Rs 6,196.51 crore

Federal Bank added 1.72% to Rs 231.25 after the bank's board approved a proposal to grant 27.29 crore warrants at a price of Rs 227 apiece to Asia II Topco XIII, amounting to a total cash consideration of Rs 6,196.51 crore.

The private lender stated that every warrant issued carries a right to subscribe to one fully paid up equity share of the bank.

In its exchange filing, the bank stated that 25% of the warrant issue price will be payable at the time of subscription of each warrant, and the remaining 75% will be payable by the warrant holder at the time of allotment of equity shares pursuant to exercise of the option attached to the warrant to subscribe to the shares.

 

Further, the banks board has approved the grant of a special right to Asia II Topco XIII (or the investor) to nominate one retiring non-executive director on the board upon exercise of all the warrants by the investor and subject to the investor holding at least 5% of the paid-up share capital of the bank.

The board has approved the convening of the extra ordinary general meeting (EGM) of the shareholders of the bank on 19 November 2025 to seek the approval of the shareholders for the preferential issue and grant of a special right to the investor to nominate a director on the board and other matters.

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking, and other banking operations. The total number of banking outlets come to 1595. The number of ATMs/ Recyclers as on 30 September 2025 is 2082 (incl mobile ATMs).

The bank's net profit declined 9.60% to Rs 955.26 crore on 3.75% increase in total income to Rs 7,824.33 crore in Q2 September 2025 over Q2 September 2024.

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