Group 1: Investment Details - Federal Bank announced that Blackstone will invest ₹6,196.51 crore through its affiliate Asia II Topco XIII Pte Ltd via a preferential issue on a private placement basis [1] - The investment will make Blackstone the largest shareholder in Federal Bank, reflecting a trend of increasing foreign investments in India's banking sector due to a strong long-term growth outlook [2] - Under the arrangement, Federal Bank will issue up to 272.97 million warrants, convertible into equity shares at a price of ₹227 per share, resulting in Blackstone holding a 9.99% stake upon conversion [3] Group 2: Terms and Conditions - The warrants will have an 18-month tenure and can be exercised in one or more tranches, with 25% of the issue price payable at subscription and the remaining 75% upon conversion [4] - Federal Bank's board has approved a special right for Blackstone to nominate one retiring non-executive director to the board, contingent on holding at least 5% of the paid-up share capital [5] Group 3: Market Context - Federal Bank does not have a promoter, and all shares are publicly held, with an extraordinary general meeting scheduled for November 19 to seek shareholder approval for the preferential issue [7] - Recent foreign investments in the Indian banking sector include Emirates NBD's $3 billion investment in RBL Bank and Japan's SMBC acquiring a 24% stake in Yes Bank [8] - Industry experts highlight the need for smaller and mid-sized banks to enhance capital, technology, governance, and expertise to remain competitive [8]