Blackstone to invest ₹6,196cr in Federal Bank via convertible warrants
Big news in Indian banking—global investment giant Blackstone is making its debut in the sector by picking up nearly a 10% stake in Federal Bank for ₹6,196 crore.
The move comes as foreign investors show growing interest in private Indian banks, with institutions like IDFC First Bank and Yes Bank also attracting significant foreign attention.
Blackstone gets 27.29 crore convertible warrants at ₹227 each
Blackstone gets 27.29 crore convertible warrants at ₹227 each, paying 25% upfront and the rest when they convert to shares within 18 months.
If Blackstone's stake hits at least 5% after conversion, they can nominate someone to Federal Bank's board.
Any unconverted warrants will be forfeited, so it's a pretty strategic play for both sides.
The investment aligns with Blackstone's strategy to deepen its foothold
This fits into Blackstone's bigger plan to grow its presence in India's financial scene—they already invest in companies like Aadhar Housing and ASK Wealth.
By backing Federal Bank, Blackstone is diversifying even more and betting on India's fast-evolving banking industry.