Federal Bank approves Rs 6,196 crore preferential warrant issue to Asia II Topco XIII
FEDERALBNK · price
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On the reaction day the stock moved 0.7 pts more than Nifty Midcap 150 and 1.4 pts more than its Private Sector Bank peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Federal Bank's board approved up to 27.30 crore warrants for Asia II Topco XIII Pte Ltd at Rs 227 each, raising up to Rs 6,196.51 crore. Each warrant converts to one share, with 25% paid upfront and 75% on conversion within 18 months. Full conversion would give the investor 9.99% stake and right to nominate one non-executive director. Shareholders vote on November 19, 2025. RBI, competition regulator and shareholder approvals are pending.
If completed, the raise can strengthen capital and fund growth, but new shares may dilute existing holders and weigh on sentiment.