Private Equity

PE-VC Fund Investments

Federal Bank to raise Rs.6,197-Cr from Blackstone

BSE Announcement   Business Line  

Publicly listed, Ernakulam-based Federal Bank is to make a preferential issue of 27.29 crore warrants aggregating INR 6,196.51 crore to Asia II Topco XIII Pte Ltd, an investment unit of global PE firm Blackstone. Each warrant carries a right to subscribe to one fully paid-up equity share at INR 227 (face value INR 2) within 18 months. Post conversion, Blackstone will hold a 9.99% stake in the bank. It will also get a board representation. The proceeds are expected to facilitate acquisitions.Founded in 1931, Federal Bank operates over 1,588 branches across the country.

Between Mar 2006 and Jun 2021, Federal Bank had attracted about USD 295 M from IFC, Affirma Capital and ChrysCapital.For FY24, Federal Bank had reported about INR 23,565 Cr in Operating Income and about INR 3,880 Cr in PAT.