Federal Bank shareholders clear Rs 6,197-crore Blackstone investment

Kolkata: Shareholders of Federal Bank on Wednesday approved Blackstone's plan to invest ₹6,197 crore in the bank for a 9.99% ownership. They also agreed to a special right to the world's leading private equity firm to nominate one non-executive director at Federal Bank's board, provided they convert all their warrants and maintain a minimum 5% shareholding in the bank after the investment.

Blackstone is making the investment through its affiliated entity Asia II Topco XIII. Issuance of warrants to Asia II Topco XIII is exercisable into equity shares by way of preferential issue on a private placement basis, the bank said.

Shareholders also approved a revision in the remuneration for managing director KVS Manian and executive director Harsh Dugar with effect from July 1 and also a payment of variable pay including grant of stock options.