India's financial sector deals surpass $7B in 2025
What's the story
The Indian financial sector has witnessed a flurry of high-value deals, totaling over $7 billion in the current fiscal year. The latest investment was made by a Blackstone affiliate in private sector lender Federal Bank. The deal involves the issuance of convertible warrants worth ₹6,196 crore for up to a 9.99% stake in Federal Bank.
Major deal
RBL, Sammaan Capital deals
The Federal Bank deal comes after Emirates-NBD's massive ₹26,853 crore investment in RBL Bank for a stake of up to 60%. The transaction will also include a mandatory open offer. Earlier this month, Abu Dhabi-based International Holding Company (IHC) announced plans to invest $1 billion (₹8,850 crore) in Sammaan Capital through a preferential allotment of shares and warrants for up to 41% stake.
Strategic move
Yes Bank stake sale to SMBC
In May, Japan's Sumitomo Mitsui Banking Corporation (SMBC) announced its plan to acquire up to a 20% stake in Yes Bank from a consortium of lenders. The group had rescued the bank from a liquidity crisis in 2020. SMBC later signed another definitive agreement to buy an additional 4.2% stake, increasing its shareholding in the private lender to 24.2% for an investment of nearly ₹15,000 crore.
Fundraising
IDFC First Bank's CCPS issue
Earlier this year, IDFC First Bank raised ₹7,500 crore by issuing Compulsorily Convertible Preference Shares (CCPS) to Currant Sea Investments B.V., a Warburg Pincus unit. The bank also raised another ₹2,624 crore from the Abu Dhabi Investment Authority. These transactions resulted in a 10% stake dilution for the bank.