Blackstone is set to invest $705m in India’s Federal Bank, acquiring a 9.99% equity stake through its affiliate Asia II Topco XIII Pte in Singapore. The investment will be in preferential equity shares and warrants pending approval from Indian regulatory bodies. Federal Bank will release 272.97 million convertible warrants at Rs227 each, with 25% payable upfront.

The bank’s shareholders will vote on the investment at an extraordinary general meeting on 19 November 2025. Upon full exercise of the warrants, Blackstone’s affiliate will have the right to appoint a retiring non-executive director to Federal Bank’s board. Shareholders can cast their votes electronically starting 12 November 2025.

This investment in Federal Bank reflects a growing trend of deal activity in India’s private banking sector. Emirates NBD recently acquired a 60% stake in RBL Bank for nearly $3bn, while Sumitomo Mitsui Banking Corporation increased its stake in Yes Bank by 20% in May and an additional 4.2% in September.

Read more at Yahoo Finance: Blackstone’s affiliate to invest $705m in India’s Federal Bank for 9.99% stake