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Federal Bank launches QIP
July 20, 2023
Federal Bank on July 19 announced that it has launched a qualified institutional placement (QIP) issue, and fixed the floor price at ₹132.59 per share.
The private lender, in a regulatory filing, said the credit, investment and raising capital committee of its board of directors has “authorised the opening of the issue today, i.e., July 19, 2023”.
The committee arrived at a pricing formula of “₹132.59 per equity share”, the exchange filing noted, adding that “the bank may, at its discretion, offer a discount of not more than five percent on the floor price so calculated for the issue”.
The floor price, at ₹132.59 apiece, marks a discount of around two percent as against the current market price. The scrip settled at ₹135.70 on the BSE in the trading session on July 19, which was 0.67 percent higher as compared to the last closing price.
In May, sources told Moneycontrol that Federal Bank was planning to raise around ₹4,000 crore through a combination of QIP and preferential allotments. The lender has picked investment banks Kotak Mahindra Capital, Axis Capital, BofA Securities and JP Morgan as advisors, the persons privy to the development had said.
The capital raise is aimed at bolstering retail growth and inorganic activity, they added. “The deal is on and a clutch of 4 advisors, two domestic investment banks and two foreign investment banks, have been shortlisted,” one of the persons above had said.
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