Federal Bank to Raise Up to ₹6,000 Crore Through Approved Equity and Debt Instruments

30 Jun 2025 , 10:15 PM

Federal Bank, based in South India, informed the exchanges on June 30 that its board has approved a broad fundraising plan through both equity and debt. The fundraising is subject to shareholder approval and other necessary regulatory clearances before implementation.

On the equity side, the bank may opt for a variety of instruments, depending on market conditions and capital requirements. These instruments include a rights issue, preferential allotment, qualified institutional placement (QIP), further public offer (FPO), or global options such as GDRs, ADRs, and FCCBs. The intention behind the multi-route equity plan is to maintain flexibility and raise funds from diverse investor categories, both domestic and international.

In parallel, the bank’s board has cleared a proposal to raise up to ₹6,000 crore through different forms of debt. These may include Additional Tier I and Tier II bonds, infrastructure bonds, green bonds, masala bonds, and non-convertible debentures (NCDs).

The debt instruments could be issued in Indian or foreign markets, depending on demand, and will likely be done through private placement within the bank’s approved borrowing limits.

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