Federal Bank has approved a proposal to raise up to Rs 6,196 crore through a preferential issue of warrants to to Blackstone group entity, Asia II Topco XIII Pte. Ltd. Each warrant gives the investor the right to buy one equity share of the bank later at a fixed price of Rs 227 per share. This price includes a face value of Rs 2 and a premium of Rs 225.
The bank said the preferential issue is subject to approval from shareholders and regulatory bodies, including the Reserve Bank of India and the Competition Commission of India.
Federal Board clears fundraise plan
Under the proposal, the bank will issue up to 27.29 crore warrants to Asia II Topco XIII Pte. Ltd. aggregating to Rs 6,196.51 crore. The investor will pay 25% of the issue price at the time of subscription and the remaining 75% at the time of conversion into equity shares.
Once fully converted, the investor will hold 9.99% of the bank’s paid-up equity capital. The warrants can be exercised within 18 months from the date of allotment, and any unconverted warrants will lapse.
Asia II Topco to get board seat in Federal Bank
Federal Bank’s board also approved the grant of a special right to Asia II Topco XIII Pte. to nominate one non-executive director to the board after exercising all the warrants and holding at least 5% of the bank’s paid-up share capital.
This special right will be subject to shareholder approval and will need to be renewed every five years.
Federal Bank to hold EGM on November 19
To seek shareholder approval for the preferential issue and the special rights, the bank will have an Extraordinary General Meeting (EGM) on November 19, at 11:00 am. The meeting will be held through video conferencing or other audio-visual means. The record date for determining eligible shareholders for e-voting has been set as November 12, 2025.