Federal Bank is set to release 272.97 million convertible warrants at a rate of Rs227 each. Credit: Piotr Swat/Shutterstock.com.
Blackstone has revealed plans to invest Rs61.9bn ($705m) in India’s Federal Bank, for acquiring a 9.99% equity stake, through its affiliate.
According to the lender’s filing, the investment will be channelled via a Blackstone affiliate, Asia II Topco XIII Pte, based in Singapore.
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The investment will be carried out via preferential equity shares and warrants, subject to the approval of Indian regulatory bodies, including the Reserve Bank of India and the Competition Commission of India.
Federal Bank is set to release 272.97 million convertible warrants at a rate of Rs227 each.
Upon subscribing to each warrant, the warrant holder will be required to pay 25% of the issue price, with the remaining 75% set to be payable during the equity share allotment when the option attached to the warrant to subscribe to the shares is exercised.
To proceed with the investment, Federal Bank has scheduled an extraordinary general meeting for shareholders on 19 November 2025.
The bank has agreed to provide a special right to the private equity firm’s affiliate, allowing it to appoint a retiring non-executive director to the bank’s board once all the warrants have been exercised by the firm.
Shareholders will have the opportunity to cast their votes electronically starting 12 November 2025.
The investment in Federal Bank is part of a broader trend of increased deal activity in the Indian private banking sector. Recently, Emirates NBD acquired a 60% stake in RBL Bank for nearly $3bn, and Japan’s Sumitomo Mitsui Banking Corporation increased its stake in Yes Bank with a 20% purchase in May, followed by an additional 4.2% in September.
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