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Federal Bank Board Backs Rs 6,196 Crore Blackstone Warrant Deal for Up to 9.99% Stake

Pending approvals, a staggered warrant structure would lift capital without immediate dilution.

Overview

  • Issuance approved for up to 272.97 million convertible warrants at Rs 227 each with 25% paid upfront, 75% at conversion, and an 18‑month exercise window in tranches.
  • An extraordinary general meeting on November 19 will seek shareholder consent, with RBI and CCI clearances required before any conversion proceeds.
  • Upon full exercise, Blackstone’s Singapore affiliate could own up to 9.99% and gain a right to nominate one retiring non‑executive director if it holds at least 5% post‑conversion.
  • Shares saw a modest uptick after the announcement, while brokerages estimate CET‑1 could rise by roughly 200–280 basis points with limited EPS dilution after conversion.
  • Reports indicate the investment would make Blackstone the bank’s largest shareholder, reinforcing a 2025 trend of sizable foreign stakes in Indian private lenders.