🏢 About the Company
The Federal Bank Limited is a leading Indian private sector bank, headquartered in Kerala. Known for its strong retail and SME customer base, the bank has a pan-India presence and offers a range of financial services including deposits, loans, insurance, and investment products.
ISIN Code: INE171A01029
NSE Symbol: FEDERALBNK
📊 Key Market Data (as of recent disclosures)
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Pre-Allotment Paid-up Capital: ₹491.19 Crores
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Post-Allotment Paid-up Capital: ₹491.23 Crores
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Increase in Shares: 21,716 equity shares
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Face Value per Share: ₹2
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Type of Issuance: ESOP (Employee Stock Option Plan)
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Method: Other — under ESOS 2017 Scheme
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Date of Allotment: May 04, 2025
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Board Approval Date: April 28, 2017
✍️ Details:
On May 4, 2025, The Federal Bank Limited completed an allotment of 2,14,216 equity shares to its employees under the ESOS 2017 Scheme, after due approval from the Nomination, Remuneration, Ethics, and Compensation Committee. These shares, having a face value of ₹2 each, were issued following the exercise of stock options granted to eligible employees.
This move is part of the bank’s ongoing efforts to incentivize and retain talent by offering them a stake in the company’s growth. Though the increase in share capital is marginal (from ₹491.19 Cr to ₹491.23 Cr), the issuance underlines the company’s commitment to employee welfare and performance-linked ownership.
The disclosure further states that, as per the company’s materiality policy, this event was not considered significant enough to be reported earlier under SEBI’s 2015 circular. However, the required compliance has now been formally submitted.
🔹 Key Points:
🔸 Company: The Federal Bank Limited
🔹 Announcement Type: New – Allotment of Securities
🔸 Shares Allotted: 2,14,216 equity shares
🔹 Type of Security: ESOP (ESOS 2017 Scheme)
🔸 Face Value: ₹2 per share
🔹 Pre-Allotment Capital: ₹491.19 Cr
🔸 Post-Allotment Capital: ₹491.23 Cr
🔹 NSE Symbol: FEDERALBNK
🔸 ISIN: INE171A01029
🔹 Allotment Date: May 04, 2025
🔸 Board Approval Date: April 28, 2017
🔹 Disclosure Earlier?: No (Not material under SEBI norms)
🔸 Purpose: Employee stock option exercise
📈 Effect on Share Market:
This allotment is not expected to materially impact the stock price as the increase in share capital is negligible (less than 0.01%). However, such ESOP exercises often signal internal confidence and could mildly bolster investor sentiment regarding the bank’s long-term employee retention strategy.
💡 How It Helps Retail Traders:
✅ Signals Positive Culture: Shows strong internal motivation and employee trust.
✅ Stable Shareholding Pattern: Very low dilution — minimal risk to existing shareholders.
✅ No Major Impact on EPS: Retains earnings value for long-term investors.
✅ Confidence Indicator: Employees betting on company stock = institutional confidence.
💬 Chat Summary Table:
| Feature | Details |
|---|---|
| Company Name | The Federal Bank Limited |
| NSE Symbol | FEDERALBNK |
| Shares Allotted | 2,14,216 |
| Type of Allotment | ESOS 2017 Scheme |
| Capital Before Allotment | ₹491.19 Cr |
| Capital After Allotment | ₹491.23 Cr |
| Face Value per Share | ₹2 |
| Allotment Date | May 04, 2025 |
| Material Disclosure Needed? | No (per SEBI policy) |
💬 Phrase:
📣 “Curious how this affects your holdings? Here’s what retail traders should know…”
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
