Federal Bank’s board has approved the issuance of warrants on a preferential basis to Asia II Topco XIII Pte. Ltd., subject to shareholder and regulatory approvals. The issuance involves up to 27,29,74,043 warrants at ₹227 per warrant, aggregating to approximately ₹6,196.51 crore. The board also approved convening an Extraordinary General Meeting (EGM) on November 19, 2025, to seek shareholder approval for the issuance.
Warrant Issuance Approval
The Board of Directors of Federal Bank has approved the issuance of warrants via a preferential issue on a private placement basis. This decision, made at a meeting held on October 24, 2025, is subject to the approval of shareholders and other relevant regulatory bodies.
Details of the Preferential Issue
The preferential issue involves the issuance of up to 27,29,74,043 (Twenty-Seven Crores Twenty-Nine Lakh Seventy-Four Thousand and Forty-Three) warrants to Asia II Topco XIII Pte. Ltd. Each warrant carries the right to subscribe to one equity share of Federal Bank.
Pricing and Aggregate Value
Each warrant is priced at ₹227 (Rupees Two Hundred and Twenty-Seven), which includes a premium of ₹225 per equity share. The total cash consideration for this issuance aggregates up to ₹6,196,51,07,761 (Rupees Six Thousand One Hundred Ninety-Six Crore Fifty-One Lakh Seven Thousand Seven Hundred Sixty-One).
EGM Announcement
An Extraordinary General Meeting (EGM) is scheduled for November 19, 2025, at 11:00 AM via video conference. The purpose of the EGM is to obtain shareholder approval for the preferential issue and granting of special rights to the investor to nominate a director on the Board.
Record Date
The record date for determining shareholders eligible to vote on the matter at the EGM is fixed as November 12, 2025.
Special Rights to Investor
Subject to shareholder approval, Asia II Topco XIII Pte. Ltd. will have the right to nominate one non-executive director upon exercising all warrants and holding at least 5% of the Bank’s paid-up share capital.
Investment Agreement
An investment agreement dated October 24, 2025, has been executed with Asia II Topco XIII Pte. Ltd., outlining the terms and conditions related to the warrant issuance.
Source: BSE
