Federal Bank to Discuss Equity Issuance and IPO Plans in Board Meeting

20 Jul 2023 , 10:57 AM

Federal Bank schedules a Board of Directors meeting for July 21, 2023. The meeting aims to discuss the issuance of equity shares through preferential allotment to the International Finance Corporation (IFC), IFC Financial Institutions Growth Fund, LP, and IFC Emerging Asia Fund, LP.

Up to 72,682,048 equity shares will be offered at a price not exceeding Rs 131.91 per equity share. Post-transaction, the investors are expected to collectively hold up to 177,528,442 equity shares of the Bank.

The board will also consider borrowing or raising funds in Indian currency or permitted foreign currencies through debt instruments like AT1 bonds, Tier II bonds, Long Term Bonds (Infrastructure & Affordable Housing), Masala Bonds, and ESG bonds on a private placement basis within the overall borrowing limits of the Bank.

Meanwhile, the non-banking financial arm of Federal Bank, Fedbank Financial Services Ltd (FedFina), plans to raise funds through an IPO.

The proposal for the IPO was discussed at the board meeting held on July 17, 2023. Federal Bank reported a strong Q1FY24 performance with a net profit of Rs 853.74 crore, a 42.2% growth YoY.

The bank’s NII for Q1FY24 increased by 19.6% to Rs 1,918 crore, and the NIM contracted marginally by 7 basis points to 3.15% YoY.

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