Federal Bank Approves ₹6,196.51 Crore Preferential Warrant Issue to Asia II Topco XIII

Federal Bank’s board meeting approved a significant preferential issue of up to 27,29,74,043 warrants to Asia II Topco XIII Pte. Ltd. This private placement priced each warrant at ₹227, totalling a potential ₹6,196.51 crore in equity capital, pending shareholder and regulatory approval.

Details of the Preferential Issue and Warrants

The warrants each give the right to subscribe to one fully paid equity share of the bank with a ₹2 face value. The issue price includes a premium of ₹225 per share. The subscription involves paying 25% of the warrant price upfront, with the balance 75% on allotment of equity shares upon exercising the warrants over 18 months. Failure to convert will result in forfeiture of the amount paid.

Asia II Topco XIII currently holds no shares but will hold up to 9.99% ownership post-exercise. The warrants are convertible in tranches and subject to regulatory approvals from authorities, including the Reserve Bank of India and the Competition Commission of India.

Special Rights and Board Nomination

As part of the agreement, Asia II Topco XIII will have the right to nominate one retiring non-executive director to Federal Bank’s board upon full exercise of the warrants and holding a minimum 5% paid-up capital, subject to shareholder approval under SEBI rules.

Extraordinary General Meeting and Record Date

Federal Bank will convene an EGM on November 19, 2025, via video conference to seek shareholder approval for the preferential issue and board nomination rights. The record date for EGM voting is set for November 12, 2025, applicable to shareholders holding physical or dematerialised shares.

Read More: Federal Bank Bets on High-Yield Segments for Profitable Growth!

Investment Agreement Highlights

The investment agreement signed on October 24, 2025, details the preferential basis for the warrant issue to Asia II Topco XIII. The agreement outlines the conversion terms, subscription payment schedule, and governance rights granted to the investor.

The bank confirms that none of the transactions constitute related party deals, and Asia II Topco XIII is unrelated to Federal Bank’s promoter or group companies.

Federal Bank Share Price Performance

On October 24, 2025, Federal Bank share price opened at ₹228.00 on NSE, above the previous close of ₹227.86. During the day, it surged to ₹232.20 and dipped to ₹228.00. The stock is trading at ₹230.88 as of 9:37 AM. The stock registered a moderate gain of 1.33%.

Over the past week, it has moved up by 8.71%, over the past month, it has moved up by 19.27%, and over the past 3 months, it has moved up by 9.20%.

Conclusion

Federal Bank’s ₹6,196.51 crore preferential warrant issuance represents a major capital infusion from Asia II Topco XIII, underlining the bank’s strategic growth plans. The transaction includes enhanced governance rights and requires shareholder and regulatory approvals, framing the bank’s equity structure for the near future.

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