Federal Bank Ltd. 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 global private equity firm Blackstone. The issuance will be conducted through a private placement and is subject to regulatory and shareholder approvals, the bank said in an exchange filing. The investment agreement between Federal Bank and Blackstone was signed on October 24, 2025.
The warrants will have an 18-month tenure from the date of allotment and may be exercised in one or more tranches. Investors are required to pay 25% of the issue price at subscription, with the remaining 75% payable upon conversion into equity shares. Any unexercised warrants at the end of the tenure will lapse, and amounts paid on them will be forfeited.
Additionally, the board approved granting Blackstone the right to nominate one non-executive director to the bank’s board, once all warrants are exercised and the investor holds at least 5% of the paid-up capital. This nomination is subject to shareholder approval under SEBI’s Listing Obligations and Disclosure Requirements.
To secure these approvals, the bank has scheduled an extraordinary general meeting on November 19, 2025, via video conferencing, with the record date for e-voting set for November 12, 2025.
