Global private equity giant Blackstone is set to acquire a 9.99% stake in Federal Bank through a preferential allotment of warrants, marking its first-ever minority investment in an Indian company. The deal, valued at Rs 6,196 crore, will see Blackstone, through its Singapore affiliate Asia II Topco XIII Pte, subscribing to 273 million warrants at Rs 227 per share.

The stock of the Kerala-based bank, within minutes of the market opening, hit a new all-time high of Rs 232.25 per share on the BSE. However, following profit booking, it ended flat at Rs 227.40 per share, up 5 paise or 0.02% from its previous close of Rs 227.35. In October, the stock of Federal Bank has gained 20%, compared to a 4.8% rise in the BSE Sensex.

With the conversion window set at 18 months, each warrant carries

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