Federal Bank to Raise Over Rs 6,196 Crore via Blackstone Group Investment

Federal Bank has approved a fundraising initiative through the issuance of preferential warrants worth Rs 6,196 crore to Blackstone's Asia II Topco XIII Pte Ltd, granting the investor certain board privileges contingent on ownership thresholds. This move could result in Asia II holding a 9.99% equity stake.

In a strategic move to bolster its financial standing, Federal Bank announced on Friday its board's approval for fundraising through the issuance of preferential warrants to Blackstone entity Asia II Topco XIII Pte Ltd. This development aims to raise over Rs 6,196 crore.

According to a regulatory filing, the arrangement allows the investor the right to nominate a non-executive director to the board, contingent on conversion of the warrants into equity and maintaining at least 5% ownership. The proposed issuance involves over 27.29 crore warrants at Rs 227 each, tallying up to the substantial sum reported.

The investment, solidified by an agreement dated October 24, 2025, is pending shareholder approval at an extraordinary general meeting scheduled for November 19. Following the announcement, Federal Bank's stock showed a brief uptick, reflecting market confidence in the plan.

(With inputs from agencies.)