In a move to enhance the bank's position as a universal financial services provider, the Kerala-based Federal Bank's plans to acquire a strategic minority stake in Equirus Capital.
The bank's board of directors approved the acquisition of 26 per cent of the paid up equity share capital of Equirus Capital Private Limited (ECPL). The deal is subject to regulatory approval and legal due diligence.
Equirus Capital is an unlisted investment banker engaged in providing comprehensive financial solutions for debt market, equity market and structured finance. The company enables corporate transactions such as mergers and acquisition (M&A), private equity (PE), IPOs, QIPs.
Post the acquisition, the two entities can benefit from each others HNI and NRI clientele. Federal Bank's investment rationale includes driving non-interest earnings product and creating new revenue streams from the expanded client base.
Reacting to this new development, the stock of Federal Bank was quoting Rs. 93.75 per share, up by 4.28 per cent at 9:58 hours on Friday. While the benchmark index, BSE Sensex was at 33,944.57, up 125.07 points or 0.37 per cent.