Federal Bank on Friday said its board has approved fundraising by issuance of preferential warrant worth over Rs 6,196 crore to Blackstone group entity Asia II Topco XIII Pte Ltd.
In a regulatory filing, it said the board has approved the grant of a special right to the investor to nominate one non-executive director on the board upon exercise of all the warrants and subject to the investor holding at least 5 per cent of the paid-up share capital of the bank.
Federal Bank will issue over 27.29 crore preferential warrants at a price of Rs 227, aggregating to Rs 6,196 crore via private placement. The tenure of the warrants is 18 months from the date of their allotment.
Post exercise of warrants into equity shares, Asia II Topco XIII Pte. Ltd. will hold 9.99 per cent stake in Federal Bank, the filing said.
"The bank has executed an investment agreement dated October 24, 2025, with the Investor (Asia II Topco XIII Pte Ltd," it added.
The extraordinary general meeting (EGM) to seek shareholders approval to the preferential warrant issue by the bank and special right to the investor to appoint a director will be held on November 19, via video conferencing.
Following the announcement, shares of Federal Bank touched Rs 232.25 apiece in early morning trade, up 2.16 per cent over the previous close on BSE on Friday. The scrip pared initial gains and was trading at Rs 227.35 in afternoon trade.
