Federal Bank board approves preferential warrant issue to raise $6.19 bn

Federal Bank Limited’s board of directors, in a meeting on October 24, 2025, approved the issuance of up to 272,974,043 warrants by way of a preferential issue on a private placement basis. These warrants, each carrying the right to subscribe to one fully paid-up equity share, will be issued at a price of 227 rupees per warrant. The total cash consideration for this preferential issue will aggregate up to 6,196,510,7761 rupees.

The warrants are to be issued to Asia II Topco XIII Pte. Ltd. An amount equivalent to 25% of the warrant issue price will be payable at the time of subscription, with the remaining 75% due upon exercise of the warrant for equity shares. The warrants will be exercisable by the investor within 18 months from the allotment date.

Shareholders' approval will be sought at an Extra Ordinary General Meeting (EGM) scheduled for November 19, 2025. The board also approved granting a special right to the investor to nominate one retiring non-executive director to the board, subject to the investor holding at least 5% of the bank's paid-up share capital after exercising all warrants.