Federal Bank on Friday announced that its board of directors has approved a preferential issue of warrants worth ₹6,196.5 crore to Asia II Topco XIII Pte. Ltd., an affiliate of global investment firm Blackstone. Following the announcement, shares of Federal Bank gained over 2%, rising as much as 2.15% to ₹232.25 apiece on the BSE.
Under the proposal, 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 to one fully paid-up equity share with a face value of ₹2 at a price of ₹227 per share, including a premium of ₹225.
Upon full conversion, the proposed issue of up to 27.3 crore warrants will result in Asia II Topco XIII Pte. Ltd. holding approximately 9.99% of Federal Bank’s paid-up equity 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% following 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 the conversion of warrants into equity shares. The warrants will have a tenor of 18 months from the date of allotment and can 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 has also called an extraordinary general meeting (EGM) of shareholders on November 19, 2025, to seek approvals for the preferential issue and the grant of the board nomination right. The record date for e-voting has been fixed as November 12, 2025.
Federal Bank Share Price Performance
Federal Bank share price has rallied 18% in one month and more than 13% in three months. On a year-to-date (YTD) basis, the stock has risen 14%, while it has gained 21% in one year. Over the past two years, Federal Bank share price has surged 60%, while it has delivered multibagger returns of 310% in the past five years.
At 11:30 AM, Federal Bank share price was trading 0.51% higher at ₹228.50 apiece on the BSE.
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