Kerala-based private sector lender Federal Bank Ltd. has approved the issue of convertible warrants on a preferential basis to Asia II Topco XIII, an affiliate of private equity firm Blackstone. The stock has risen on Friday, October 23, in response to the announcement.

Federal Bank has approved the issue of 27.29 crore warrants, each carrying a right to subscribe to one fully paid-up equity shares of the bank at a price of ₹227 per share, which is nearly the same price at which the stock closed on Thursday.

At ₹227 per share, the amount that Blackstone will be infusing into Federal Bank would be ₹6,196 crore. 25% of the warrant issue price will be payable at the time of subscription of each warrant, and the remaining 75% will be payable at the time of exercise of the options attached to

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