Mumbai, Oct 24 (IANS) Federal Bank on Friday announced that its Board has approved the sale of a 9.99 per cent stake to an affiliate of US-based private equity firm Blackstone.

The deal, valued at Rs 6,196.5 crore, will be carried out through the issue of preferential equity shares and warrants, the bank said in a statement.

Under the agreement, 25 per cent of the warrant issue price will be paid at the time of subscription, while the remaining 75 per cent will be payable when the warrants are converted into equity shares.

Once the transaction is completed, Asia II Topco XIII Pte. Ltd., a Blackstone affiliate, will hold a 9.99 per cent stake in Federal Bank.

The bank plans to issue over 27 crore warrants, each priced at Rs 227. Each warrant can later be converted into one share of the

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