Federal Bank Launches Rs 2,000 Crore QIP

South-based Federal Bank on Thursday (22 June) launched a institutional sale of shares, aiming to raise around Rs 2,000 crore or $310 million in capital.

There is an option to upsize the issue by Rs 500 crore or $77 million, sources said.

In a regulatory filing, the bank said its credit committee, and investment and raising capital committee has authorised the opening of the qualified institutional placement (QIP) of shares on Thursday (22 June).

The floor price has been set at Rs 117.04 per share and it can sell shares at a discount of not more than 5 per cent, it said in the filing.

Investment banking sources put the indicative price band of the share sale at between Rs 111.50 to Rs 116.70.

The bank is looking at issuing between 214.2 million to 224.2 million shares in the issue.

The bank scrip shed 1.81 per cent to close at Rs 116.85 at the Bombay Stock Exchange (BSE), as against a 0.04 per cent correction in the benchmark.

German lender Deutsche Bank, Kotak Mahindra Capital and IIFL Holdings are bankers to the issue.

The issue comes amid a flurry of similar deals in the banking space, which has seen SBI raise the largest QIP at over Rs 15,000 crore, Kotak Mahindra Bank raising over Rs 5,500 crore and Yes Banks Rs 4,900 crore issue.

(PTI)