Shares of Bandhan Bank witnessed a sharp rise of over 9% on Tuesday, reaching a high of Rs 171.55. This surge came after a newspaper report indicated that Abu Dhabi-based International Holding Company (IHC) was among several investors engaged in early-stage discussions to acquire a stake in Bandhan Financial Services Ltd (BFSL), the promoter of Bandhan Bank.
According to the report, BFSL is working with investment bank Jefferies to identify strategic investors for a 25-32% stake. This potential transaction could offer an exit opportunity for early investors, including Singapore's GIC and the International Finance Corporation (IFC), who collectively held approximately 30.3% of BFSL as of March. Their combined stake is estimated to be valued between $500 million and $600 million.
Bank Denies Knowledge of Negotiations
Despite the market's reaction, Bandhan Bank clarified in an exchange filing that it was "not aware of any such development" and had not received any communication regarding the reported negotiations. The bank stated it was therefore not in a position to comment on the accuracy of the news report and attributed the share price movement to general market conditions.
Other Potential Investors
The report also mentioned other prominent entities as potential investors in BFSL, including First Abu Dhabi Bank, Qatar Investment Authority, and private equity firms such as Carlyle and EQT. It emphasized that these discussions are still in their preliminary stages, with no guarantee that a transaction will materialize.
Promoter Stake and Regulatory Requirements
Bandhan Financial Holdings, a subsidiary of BFSL, held a 37.5% stake in Bandhan Bank at the end of June 2026. Under the bank's licensing conditions, the promoter is mandated to reduce its holding to 26% by the year 2030. A stake transaction at the promoter level could facilitate compliance with these regulatory requirements while also providing liquidity for existing long-term investors.