Overview
- Federal Bank disclosed that RBI approved Blackstone affiliate Asia II Topco XIII to acquire up to 9.99% of its paid-up share capital or voting rights.
- The planned investment of ₹6,196.51 crore was previously announced and received Competition Commission of India clearance in December 2025.
- Federal Bank will issue up to 272.97 million convertible warrants at ₹227 each with an 18‑month tenor, with 25% payable on subscription and the balance on conversion.
- On full conversion, Blackstone would hold 9.99% and can nominate a director while its stake remains at or above 5%, making it the bank’s largest shareholder.
- Federal Bank shares were little changed after the filing, and RBI recently granted a similar 9.99% limit to SBI Mutual Fund, reflecting rising foreign interest in private lenders.