Federal Bank Raises Rs 3,099 Crore via QIP to Fuel Business Growth

26 Jul 2023 , 03:10 PM

Federal Bank raises Rs 3,099 crore through a qualified institutional placement (QIP) route to fund business growth.

The bank’s board approves the allotment of 23.04 crore shares to eligible, qualified institutional buyers at an issue price of Rs 131.90 per unit.

The issue price includes a premium of Rs 129.90 per share, offering a discount of Rs 0.69 (0.52%) on the floor price of Rs 132.59. The QIP’s floor price was fixed at Rs 132.59 per equity share by the board last week.

After the allotment of shares, Federal Bank’s paid-up equity share capital increased from Rs 4,23,63,28,436 crore to Rs 4,697,283,704 crore.

The bank’s net profit for the June quarter rose by 42% to Rs 1,147 crore compared to Rs 807 crore in the previous year. Total income in the first quarter of the current fiscal rises to Rs 5,757 crore, up from Rs 4,081 crore in the corresponding period a year ago.

The successful QIP and strong financial performance demonstrate Federal Bank’s growth potential and investor confidence.

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