A Singapore-based affiliate of Blackstone has entered into a definitive agreement to acquire a 9.9% stake in India’s Federal Bank through a combination of preferential shares and warrants, according to a report by Reuters.
The investment, valued at approximately $705m, will make Blackstone the largest shareholder in the bank.
Under the terms of the deal, the alternative investment giant will hold incremental board rights including the option to nominate a non-executive director to Federal Bank.
The deal is subject to shareholder approval and regulatory clearances, with an extraordinary general meeting scheduled by Federal Bank for 19 November 2025 to ratify the preferential issuance and board seat.
