Federal Bank Raises ₹6,197 Crore via Preferential Warrants to Blackstone Affiliate

Federal Bank has greenlit a major ₹6,196.5 crore capital infusion through the issuance of 27,29,74,043 convertible warrants priced at ₹227 each to Asia II Topco XIII Pte. Ltd., a Blackstone affiliate. The move follows regulatory approval requirements and shareholder consent expected at the upcoming Extraordinary General Meeting on November 19, 2025.

Each warrant grants the holder the right to convert into one fully paid equity share (face value ₹2, premium ₹225) within 18 months, potentially giving the investor a 9.99% ownership stake in the bank. Upon completion, Blackstone will also gain the right to nominate one non-executive director to Federal Bank’s board.

The preferential allotment underscores Blackstone’s growing investment footprint in Indian financial services and Federal Bank’s effort to strengthen its capital adequacy and support expansion in retail and digital lending.

Key Highlights:

₹6,196.5 crore to be raised via 27.3 crore convertible warrants.

Each warrant priced at ₹227 with a 1:1 equity conversion ratio.

Issued to Asia II Topco XIII Pte. Ltd. (Blackstone affiliate).

Post-conversion stake to stand at 9.99%.

EGM scheduled for November 19, 2025, to seek shareholder approval.

Sources: NSE Corporate Filing, BSE Announcement, Reuters, Financial Express.