Federal Bank’s Board has approved issuing warrants on a preferential basis to Asia II Topco XIII Pte. Ltd., subject to shareholder and regulatory approvals. The issue comprises up to 27,29,74,043 warrants, each convertible into one equity share at ₹227. The total consideration is up to ₹6,196.51 crore. An Extraordinary General Meeting (EGM) is scheduled for November 19, 2025, to seek shareholder approval.
Warrant Issuance Approved
The Board of Directors of Federal Bank has given its approval for the issuance of warrants via a preferential issue on a private placement basis. This decision was made during a board meeting held on October 24, 2025. The move is subject to the approval of the bank’s shareholders and other regulatory bodies.
Details of the Preferential Issue
The preferential issue involves up to 27,29,74,043 warrants to Asia II Topco XIII Pte. Ltd. Each warrant grants the holder the right to subscribe to one fully paid-up equity share of Federal Bank, with a face value of ₹2 per share. The subscription price, including a premium, is set at ₹227 per share. The total cash consideration from this issuance could reach up to ₹6,196.51 crore.
Special Rights for Investor
Upon exercising all warrants and holding at least 5% of the bank’s paid-up share capital, Asia II Topco XIII Pte. Ltd. will have the right to nominate one non-executive director to Federal Bank’s Board.
Extraordinary General Meeting
An Extraordinary General Meeting (EGM) is scheduled for November 19, 2025, at 11:00 am, conducted via video conference. The purpose of the EGM is to seek shareholder approval for the preferential issue and the grant of special rights to the investor. The record date for determining shareholders eligible to vote at the EGM is November 12, 2025.
Source: BSE
