New Delhi, Oct. 24 -- Federal Bank on Friday announced that its board of directors has approved a preferential issue of warrants worth Rs.6,196.5 crore to Asia II Topco XIII Pte. Ltd., an affiliate of global investment firm Blackstone. Following the announcement, shares of Federal Bank gained over 2%, rising as much as 2.15% to Rs.232.25 apiece on the BSE.

Under the proposal, Federal Bank will issue 27,29,74,043 warrants on a private placement basis to Asia II Topco XIII Pte. Ltd. Each warrant will carry the right to subscribe to one fully paid-up equity share with a face value of Rs.2 at a price of Rs.227 per share, including a premium of Rs.225.

Upon full conversion, the proposed issue of up to 27.3 crore warrants will result in Asia ...