BSE data shows that Rekha Jhunjhunwala, wife of the late market legend Rakesh Jhunjhunwala, now owns 5.9 crore shares of Federal Bank. In the June quarter, the market veteran owned 3.6 crore shares, as per the shareholding pattern of Federal Bank on the BSE.
Interestingly, the stake purchase came before private equity major Blackstone announced a $705 million investment for a 9.9% stake in the private lender, a move that positions the U.S. private equity player as Federal Bank’s largest shareholder and underscores a growing wave of global capital flowing into India’s financial sector.
Federal Bank said last week that Blackstone will acquire the stake through a Singapore-based affiliate, which has also been granted 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 regulator.
The bank’s shareholders will vote on the proposal at an extraordinary general meeting on November 19.
Following the development, a host of brokerages have issued bullish calls on the stock. ICICI Securities, with a Buy call and price target of Rs 250 per share, said the transaction is expected to enhance the pro forma CET1 ratio by around 280 basis points over the next 18 months, while FY27E ABV could rise by about 4%.“Federal Bank (FB) has delivered a steady performance in Q2FY26, with a 12-bps quarter-on-quarter improvement in NIM and credit costs easing to the mid-50s, following a minor uptick in Q1FY26. This portfolio realignment may continue in the near term, but loan growth appears to have bottomed out, and the proposed capital infusion is expected to strengthen growth prospects over the medium term,” it stated in a report dated October 26.PL Capital, which has retained its Buy call, said that the proposed capital raise is a positive development as it will strengthen Federal Bank’s balance sheet and provide a foundation for future growth. The infusion not only enhances capital adequacy but also gives the bank flexibility to explore potential inorganic acquisitions.
The brokerage noted that Federal Bank is currently in a consolidation phase, with a strategic shift in its asset-liability mix underway. The additional capital will bolster CET-1 levels and position the bank well for the next phase of expansion. Reflecting the improved balance sheet strength and higher ABV, PL Capital has raised its valuation multiple to 1.4x (from 1.3x) on September 2027 ABV, and increased its target price to Rs 250 from Rs 235.
“Small and midcap private sector banks are at an inflection point. They are in a better position to capitalize on accelerating banking, given smaller bases and greater risk appetites. The turn in the credit cycle also benefits them, leading to strong FY27E earnings acceleration. The wave of strategic transactions further strengthens the investment case, as it solves capital woes and strengthens deposit franchises. We are positive on the entire basket—Federal, RBL, IDFC First, and Yes—and add IDFCFB to our model portfolio,” Emkay said in a note on October 27.
It isn’t just Federal Bank, Rekha has also increased her stake in Titan Company by purchasing an additional 15 lakh shares, or about 0.2%, in the second quarter of FY26, according to the latest BSE filings. With this acquisition, her total holding in the Tata Group company now stands at 5.3%, as per Trendlyne data.
BSE data shows that Rekha Jhunjhunwala now owns 4.7 crore shares in Titan. The Jhunjhunwala family first invested in the company between 2002 and 2003, when Titan was a struggling Tata venture and its shares traded in mere double digits. What began as an investment worth just a few crores eventually turned into the cornerstone of the Jhunjhunwala family portfolio.
She holds over 40% in Aptech, and 1.6% in Canara Bank, according to Trendlyne.
Federal Bank shares are up 24% in the last 1 month and over 350% in the last 5 years.
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