Shares of Federal Bank Ltd are anticipated to grab attention on Friday morning following the green light from the Reserve Bank of India (RBI) for ICICI Prudential Asset Management Company Ltd to secure a combined holding of up to 9.95% in the paid-up share capital or voting rights of both Federal Bank and RBL Bank.
In an official filing to BSE, Federal Bank conveyed, “The bank has received communication from the Reserve Bank of India on December 28, 2023, stating its approval to ICICI Prudential Asset Management Company Ltd. (ICICI AMC) for obtaining a combined holding of up to 9.95% of the paid-up Share Capital or Voting Rights of the Bank, subject to the specified conditions.”
The bank, endorsed by investor Rakesh Jhunjhunwala, highlighted that the RBI’s approval is contingent on compliance with the pertinent provisions of the Banking Regulation Act, 1949, RBI’s Master Direction and Guidelines on Acquisition and Holding of Shares or Voting Rights in Banking Companies issued on January 16, 2023 (as amended over time), provisions of the Foreign Exchange Management Act, 1999, regulations set forth by the Securities and Exchange Board of India, and any other applicable guidelines, regulations, and statutes.
This development has triggered market activity, and as of 11:09 am, Federal Bank shares exhibited a modest 0.45% gain, trading at ₹156.20.
