Federal Bank on Friday announced that its board has approved a preferential issue of warrants worth ₹6,196.5 crore to Asia II Topco XIII Pte. Ltd., an affiliate of the global investment firm Blackstone. After the announcement, shares of Federal Bank rose more than 2%, by as much as 2.15% to ₹232.25 apiece on the BSE. Pursuant to the proposal, the Federal Bank will issue 27,29,74,043 warrants on a private placement basis to Asia II Topco XIII Pte. Ltd. Each warrant will carry the right to subscribe for one fully paid up equity share of face value of ₹2 at a price of ₹227 per share including a premium of ₹225. Upon full conversion, the proposed issuance of up to 27.3 crore warrants will result in Asia II Topco XIII Pte. Ltd. which owns approximately 9.99% of the Federal Bank’s paid-up share capital. As part of the agreement, the Blackstone entity will have the right to nominate one non-executive director to the bank’s board once its shareholding reaches at least 5% after the conversion of warrants. Asia II Topco XIII Pte. Ltd. will pay 25% of the issue price at the time of warrant subscription, with the remaining 75% payable upon conversion of warrants into equity shares. The warrants will have a duration of 18 months from the date of grant and may be exercised in one or more tranches. The investment agreement between Federal Bank and the Blackstone affiliate was signed on October 24, 2025. Federal Bank also convened an extraordinary general meeting of shareholders on November 19, 2025 to seek approval for the preferential issue and the grant of the board nomination right. The record date for e-voting is set as November 12, 2025. Federal Bank Share Price Performance Federal Bank share price rose 18% in one month and more than 13% in three months. On a year-to-date (YTD) basis, the stock is up 14%, while in one year it is up 21%. Over the past two years, Federal Bank’s share price has risen 60%, while it has delivered multibagger returns of 310% over the past five years. By 11:30 AM, the Federal Bank share price was trading 0.51% higher at ₹228.50 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Federal Bank board approves raising ₹6,196 crore through preferential issue of warrants to Blackstone entity
