Abu Dhabi’s International Holding Company (IHC) is in early talks to buy a stake in Bandhan Financial Services (BFSL), the promoter entity of Bandhan Bank, according to an Economic Times report. First Abu Dhabi Bank, Qatar Investment Authority, Carlyle and EQT have also reportedly been sounded out. First Abu Dhabi Bank declined to confirm the talks, and the other firms did not respond to queries.
BFSL is reportedly looking to sell 25% to 32% of its equity in a deal worth roughly $500 million to $600 million, with Jefferies advising. The process would also give an exit to long-standing shareholders. Singapore’s GIC and the International Finance Corporation (IFC) are reportedly considering a full or partial exit. At the end of March, the two held about 30.3% of BFSL between them. The proposed deal is for a stake in the promoter, not a direct stake in the bank. BFSL held about 37.5% of Bandhan Bank at the end of June, and under the RBI-agreed licensing framework the promoter’s holding must fall to 26% by 2030.
The talks are at an early stage and may not lead to a transaction. Bandhan Bank chairman Chandra Shekhar Ghosh said, “We don’t comment on market speculation.” In reply to a BSE and NSE query, the bank said it has no knowledge of the report, has received no official communication, and has no pending price-sensitive information.
Bandhan Bank shares rose about 3% in early trade on Tuesday to ₹162 on the NSE. Whalesbook later reported a gain of about 9% to ₹171.55 for the day.
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