Home / Business and Economy / Bandhan Bank Promoter Explores Investor Exit Routes
Bandhan Bank Promoter Explores Investor Exit Routes
13 Mar
Summary
- Bandhan Financial Services is exploring exit options for its long-term investors.
- Jefferies has been engaged to gauge investor interest, potentially from PE funds.
- The move aligns with regulatory requirements to reduce promoter stake by 2030.
Bandhan Financial Services, the promoter of Bandhan Bank, is actively exploring options for its long-term investors, such as GIC Ventures and the International Finance Corp (IFC), to exit their investments. The company has appointed global investment banker Jefferies to gauge interest from potential buyers, with a focus on private equity funds. This initiative was discussed at a recent Bandhan Financial board meeting. The move is partly driven by a regulatory requirement for Bandhan Financial to decrease its stake in Bandhan Bank to 26% by the year 2030.
The promoter currently holds a stake just under 40% and plans a phased reduction. Two primary exit strategies are under consideration: a direct sale of shares to private equity investors, which could potentially yield a higher valuation given Bandhan Financial Services' diverse holdings including an asset management company and a life insurance firm, or proceeding with an initial public offer (IPO).
Caladium Investment Pte (GIC Ventures) held 16.7% and IFC owned 13.6% as of March 31, 2025. This strategic review coincides with a notable recovery in Bandhan Bank's business performance, particularly in its microfinance segment, which had faced asset quality stress. Bandhan Financial Services' net profit is projected to rise significantly to approximately ₹285 crore for the nine-month period, a substantial increase from ₹104 crore in FY25. A deadline of June has been suggested for a private stake sale, after which the focus will shift entirely to an IPO.
