Federal Bank shares rally 3% to hit record high. What's behind the frenzy?
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Shares of Federal Bank surged as much as 3.4% on Monday to a record high of Rs 235.20 on the BSE, extending Friday’s rally after Blackstone announced a $705 million investment for a 9.9% stake in the private lender. The move positions the U.S. private equity giant as Federal Bank’s largest shareholder and underscores the growing wave of global capital flowing into India’s financial sector. Federal Bank said on Friday that Blackstone will acquire the stake through a Singapore-based affiliate, which will also have the right to nominate a non-executive director to the bank’s board. The investment — to be executed via preferential equity shares and warrants — is subject to shareholder and regulatory approvals, including from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI). The bank’s shareholders will vote on the proposal at an extraordinary general meeting on November 19. Federal Bank, which has a loan book of R...