Federal Bank is planning to raise money by issuing warrants (a type of financial instrument that can later be converted into shares) to Blackstone, a big global investment firm. The total value of these warrants is ₹6,196.5 crore. The investor is Asia II Topco XIII Pte. Ltd., a Blackstone group company.
What the deal means?
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A total of 27.3 crore warrants will be issued.
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Each warrant can later be converted into one equity share of Federal Bank at ₹227 per share (₹2 face value + ₹225 premium).
- If Blackstone converts all these warrants into shares, it will own about 9.99% (nearly 10%) of Federal Bank, a significant minority stake.
- Once it owns at least 5%, it can nominate one person to become a non-executive director on the bank’s board. This right needs to be approved by shareholders as per SEBI rules.
Payment Details:
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When the warrants are issued, Blackstone will pay 25% of the total amount.
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The remaining 75% will be paid when it decides to convert the warrants into shares.
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Blackstone will have 18 months (1.5 years) from the allotment date to convert the warrants all at once or in parts.
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If any warrants are not converted by then, they will expire, and the money already paid on them will be forfeited (not refunded).
Federal Bank will hold an Extraordinary General Meeting (EGM) on November 19, 2025, via video conference, to get shareholder approval for this deal which includes the preferential issue of warrants, and the board nomination right for Blackstone. Only shareholders on record as of November 12, 2025, can vote.
After the announcement, Federal Bank’s share price went up by 1.3% to ₹230.75 on the NSE.
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