Key Highlights
- Federal Bank to issue 27.29 crore warrants on a preferential basis to Asia II Topco XIII Pte Ltd
- Asia II Topco XIII Pte Ltd is a Singapore-based investment entity affiliated with global private equity firm Blackstone Group.
- Total issue size valued at ₹6,196.51 crore at ₹227 per warrant
- Investor gains right to nominate one non-executive director after full conversion
- EGM scheduled for November 19, 2025, through video conferencing
- Record date for e-voting fixed as November 12, 2025
The Federal Bank Limited announced that its Board of Directors has approved the issuance of 27,29,74,043 warrants on a preferential basis to Asia II Topco XIII Pte Ltd, aggregating to a total value of ₹6,196.51 crore. Each warrant is priced at ₹227 and entitles the holder to subscribe to one fully paid-up equity share of the bank with a face value of ₹2.
The preferential issue, approved on October 24, 2025, will be conducted on a private placement basis, subject to necessary approvals from shareholders and regulators, including the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
As per the Investment Agreement signed between the bank and Asia II Topco XIII Pte Ltd, the investor will pay 25% of the issue price during subscription and the remaining 75% upon conversion into equity shares. The warrants will have a tenure of 18 months from the allotment date and can be exercised in one or more tranches. Any unconverted warrants will lapse after the period, with the paid amount being forfeited.
Following the full conversion of warrants, Asia II Topco XIII Pte Ltd will hold approximately 9.99% of the paid-up share capital of Federal Bank. The investor will also receive the right to nominate one retiring non-executive director to the bank’s board, provided it maintains at least a 5% shareholding and receives shareholder approval in line with SEBI Regulation 31B.
To obtain shareholder approval for the preferential issue and the nomination right, Federal Bank has scheduled an Extraordinary General Meeting (EGM) on November 19, 2025, via video conferencing. The record date for determining shareholders eligible for e-voting has been set as November 12, 2025.