Federal Bank gets board nod for ₹148 cr rights issue subscription of FFSL
Premium- Objective of the rights issue is to infuse regulatory capital in the firm
- This is more than 5% of the post-issue paid-up capital of FFSL, Federal Bank said
NEW DELHI : Private sector Federal Bank on Tuesday said its board has cleared ₹148 crore-capital investment into subsidiary Fedbank Financial Services (FFSL) through a rights issue.
FFSL is a non-deposit-taking systemically important NBFC, which was set up in 1995 by the bank.
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"We wish to inform that the board has approved an investment of ₹148 crore in subsidiary, Fedbank Financial Services Limited (FFSL), through rights issue," Federal Bank said in a regulatory filing.
Objective of the rights issue is to infuse regulatory capital in the firm. This is more than 5% of the post-issue paid-up capital of FFSL, Federal Bank said.
In 2020-21, the turnover of FFSL stood at ₹698 crore. Asset size of the company stood at ₹5,466.30 crore as on 31 March 2021.
The lender said it will complete the subscription under the rights issue at ₹70 per share for a cash consideration within two months. Federal Bank holds 74% stake in the subsidiary.
Scrip of the bank traded at ₹84.85 apiece on BSE, up by 3.92% from previous close.
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