Blackstone To Buy Minority Stake In Federal Bank For Nearly Rs 6,200 Crore

Blackstone Inc., the world's largest alternative asset manager, will acquire a minority stake in Federal Bank Ltd. for Rs 6,196 crore.

The Kerala-based bank will issue over 27 crore warrants via a preferential allotment to Blackstone affiliate Asia II Topco XIII Pte. Ltd. for Rs 227 apiece, according to an exchange filing on Friday.

An amount equivalent to 25% of the warrant issue price will be payable at the time of subscription, and the remaining 75% will be payable at the time of allotment of equity shares after exercise of warrants. The warrants have to be converted in 18 months.

After the exercise of warrants into shares, Blackstone will own a 9.99% shareholding in Federal Bank.

The US firm will be granted a special right to nominate one retiring non-executive director on the Federal Bank Board upon exercise of all the warrants after it holds at least 5% of the paid-up share capital.

The deal requires approval from shareholders, the Reserve Bank of India and the Competition Commission of India.

Federal Bank will convene an Extra Ordinary General Meeting on Nov. 19, 2025, to seek their approval. The record date has been fixed as Nov. 12 for ascertaining the names of the shareholders.