Federal Bank approved equity shares of Rs 916.25 crore

Equity shares upto 104,846,394 at a price of Ra 87.39 each, aggregating to approximately Ra 916.25 crore are proposed to be allotted to IFC, IFC Financial Institutions Growth Fund, LP and IFC Emerging Asia Fund, LP, Federal Bank said in a regulatory filing. Under that, the bank had also proposed to issue 31,453,918 shares to IFC, and 36,696,238 shares each to FIG and EAF.

On Wednesday the private sector Federal Bank said that its board has approved the issue of equity shares to World Bank arm International Finance Corporation and Associates for over Rs 916.25 crore.

The Board also decided to rise up to Ra 4,000 crore by issuing equity shares or other instruments through various modes and Rs 8,000 crore by issuance of debt securities in Indian or foreign currency.

Equity shares up to 104,846,394 at a price of Ra 87.39 each, aggregating to approximately Ra 916.25 crore are proposed to be allotted to IFC, IFC Financial Institutions Growth Fund, LP and IFC Emerging Asia Fund, LP, Federal Bank said in a regulatory filing. Under that, the bank had also proposed to issue 31,453,918 shares to IFC, and 36,696,238 shares each to FIG and EAF.

The Federal Bank said that there are three investors who are being issued with the equity shares pursuant to preferential allotment, and that the bank will raise fund by way of issuance of equity capital up to an aggregate amount of Rs 4,000 crore on its equivalent amount in foreign currencies in one or more tranches through various modes including rights issue, private placement, qualified institutions placement, preferential issue or follow on public offer, GDR, ADR or foreign currency convertible bonds. Also, the board accorded its approval to raise up to Rs 8,000 crore by issuing debt instruments through various modes including additional tier 1 bonds, tier 2 bonds, long term bonds, masala bonds, green bonds, NCDs.

The instruments are intended to be issued in the domestic or the overseas market in one or more tranches on a private placements basis, said the Bank.

The fund raise approval decisions by the board of the bank are subject to approval of shareholders of the bank in its forthcoming annual general meeting (AGM).

The banks ensuing AGM has been scheduled on July 9, 2021 by the way of a video conference or other such means.

On BSE, the federal bank stock closed at Rs 84.95 a piece which was down 1.22 per cent.

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