The company's board authorized and declared the opening of the issue on Wednesday, 19 July 2023.

The floor price of Rs 132.59 is at a discount of 2.3% to the previous day's closing price of Rs 135.70 on the BSE.

The company may offer a discount of not more than 5% on the floor price for the issue.

The issue price will be determined by the company in consultation with the book running lead managers appointed for the issue.

In its draft placement document filed with the bourses, the private bank said: “our bank intends to use the net proceeds for augmenting our bank's tier-I capital base to meet our future capital requirements, for general corporate requirements or any other purposes as may be deemed appropriate by our board (or duly constituted committees) in its discretion.”

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 added 0.77% to currently trade at Rs 136.75 on the BSE.