A historic deal has been seen in India’s banking sector! 🏦 Federal Bank has decided to sell its 9.99% stake to America’s leading private equity company Blackstone, the total value of which is about ₹ 6,196.5 crore. This investment was made by Asia II Topco XIII Pte. Ltd., which is an affiliate of Blackstone. Under this deal, Federal Bank will issue more than 27 crore warrants, the price of which has been fixed at ₹ 227 per warrant. Blackstone will have to pay 25% of the amount initially, while the remaining 75% will be paid when they choose to convert the warrants into shares. Most interestingly — Blackstone will also get the right to nominate a non-executive director, which will increase his strategic influence in the management of the bank. Blackstone already has over $50 billion invested in India and this deal reflects their growing confidence in India. This is a big confidence signal not only for the Federal Bank but for the entire Indian economy.
Blackstone’s big entry! Banking sector shaken by deal worth ₹6,196 crore in Federal Bank. Money Live | Blackstone makes a big entry! ₹6,196 crore deal with Federal Bank shakes the banking sector
