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Blackstone to Acquire Minority Stake in Federal Bank for Rs 6,196.51 crore.

Banking & Finance | Dated: 25 Oct 2025

The Board of **Federal Bank** approved the sale of a **9.99% minority stake** to an affiliate of the U.S. private equity firm **Blackstone** for **?6,196.51 crore**. The transaction, executed via a preferential issue of warrants, marks a significant private equity investment in the Indian banking sector.

🎯 Key Highlights:

  • The deal involves the sale of a 9.99% minority stake in Federal Bank to a Blackstone affiliate.
  • The transaction is valued at approximately ?6,196.51 crore and is executed via a preferential issue of warrants.
  • The acquisition is one of the largest private equity investments in the Indian banking sector.

💡 Other Important Facts:

  • Deal requires approvals from RBI, CCI, and bank's shareholders.
  • Acquisition strengthens Federal Bank's capital base.
  • Highlights the trend of Indian lenders attracting substantial private capital.

📚 Test Your Knowledge:

What is the value of the minority stake acquired by Blackstone in Federal Bank?

Correct Answer: Rs 6,196.51 crore

🚀 Quick Recap:

About Federal Bank

  • Established: 1931, HQ: Aluva, Kerala, Tagline: Your Perfect Banking Partner.
  • Blackstone: US Private Equity Firm, Stake Acquired: 9.99%, Investor gains director nomination rights.