Federal Bank gets board nod to buy 26% stake in Equirus

Our Bureau Kochi | Updated on February 22, 2018 Published on February 22, 2018

The board of directors of Federal Bank has approved acquiring a strategic minority stake of 26 per cent in Equirus Capital Pvt Ltd subject to statutory and regulatory approvals and satisfactory completion of financial and legal due diligence.

The investment rationale has been driven by the need to increase the product offerings to a spectrum of wholesale clients by offering comprehensive financial solutions for debt & equity capital markets, structured finance, capital market products and advisory. The association can also aid Federal Bank in offering a host of products including wealth management services to HNI and the NRI diaspora. The strategic tie-up would help shore up non-interest earnings for the bank while creating additional revenue streams with identified clients.

Ganesh Sankaran, Executive Director, Federal Bank, said that the partnership would serve as a natural complement to the bank’s strong origination capabilities and deep client relationships in addition to positioning Federal Bank as a universal financial services provider. With a shift in client preferences, the bank’s foray into investment banking will help participate in opportunities and instruments beyond traditional banking products.

According to Ajay Garg, Managing Director, Equirus Capital, investment by Federal Bank is a strong endorsement of its team’s entrepreneurial venture now on the path to becoming an institution.

“With this relationship, we intend to expand our product offerings in debt, and leverage on Federal Bank’s extensive network and client base to enhance each of our business lines.”

Published on February 22, 2018
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