The first proposal entails issuance of equity shares by way of a preferential allotment, to International Finance Corporation (IFC), IFC Financial Institutions Growth Fund, LP (FIG), and IFC Emerging Asia Fund, LP (EAF) (collectively, IFC, FIG and EAF referred to as investors) for subscribing up to 72,682,048 equity shares of the bank.

The minimum subscription price per share for a preferential issue by the Company to qualified institutional buyers shall not exceed Rs 131.91 per equity share. Upon consummation of the transaction, the Investors shall in aggregate hold up to 177,528,442 equity shares of the bank.

The second proposal involves borrowing/ raising of funds in Indian currency or any other permitted foreign currency by way of issue debt instruments including but not limited to additional tier-I bonds (AT1 bonds), tier-II bonds, long term bonds (infrastructure & affordable housing), masala bonds, bonds issued for environmental social governance funding (ESG bonds) such as green bonds, blue bonds, non-convertible debentures or such other debt securities as may be permitted by RBI from time to time, in domestic market and/or overseas market, on a private placement basis.

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1,366 branches and 1,920 ATMs/recyclers as on 30 June 2023.

The private bank's standalone net profit jumped 42.13% to Rs 853.74 crore on 41.05% increase in total income to Rs 5,756.94 in Q1 FY24 over Q1 FY23.

The scrip shed 0.59% to currently trade at Rs 134 on the BSE.