Blackstone Pays $706 Million for 10% of India’s Federal Bank (1)

Blackstone Inc. will become the largest shareholder in India’s Federal Bank Ltd. after injecting about $706 million into the lender.

Asia II Topco XIII Pte., an affiliate of the private equity giant, is paying 61.97 billion rupees for warrants that will result in a 9.99% stake in Federal Bank, the lender said in a statement Friday.

Federal Bank will issue 272.97 million warrants to Asia II Topco XIII, which can then be converted into an equal number of shares within 18 months at 227 rupees each, about 0.4% below Thursday’s closing price. The shares on Friday rose as much as ...