The Board of Federal Bank on Friday approved the sale of a 9.99% stake to an affiliate of US private equity firm Blackstone. The transaction is expected to be executed through preferential equity shares and warrants worth ₹6,196.5 crore, the Indian lender said.
Under the deal, 25% of the warrant issue price will be payable at the time of subscription for each warrant, with the remaining 75% due upon allotment of equity shares when the option attached to the warrant is exercised.
Following the transaction, Asia II Topco XIII Pte. Ltd. will hold a 9.99% stake in Federal Bank. The bank will issue over 27 crore warrants, each priced at ₹227, allowing the firm to convert each warrant into one share of the bank, typically without additional payment beyond the initial ₹227, unless otherwise specified.
The bank also approved granting the Blackstone affiliate a special right to nominate one retiring non-executive director to its board once all the warrants have been exercised.
Federal Bank shares were trading at ₹229.30, up 0.86% as of 9:51 am on 24 October 2025.
Blackstone, which manages roughly $50 billion in private equity and real estate investments in India, has identified the country as its top investment market globally, Bloomberg reported.
