Bandhan Bank Ltd. said it was not aware of any development regarding a reported stake sale in its promoter entity, Bandhan Financial Services Ltd. (BFSL), and had not received any communication on the matter.
The clarification follows a report by The Economic Times that Abu Dhabi-based International Holding Company (IHC) and First Abu Dhabi Bank were in early-stage talks to acquire a strategic stake in BFSL.
In an exchange filing, the bank said it was not aware of any such development and had not received any communication in this regard.
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According to The Economic Times, BFSL, led by founder Chandra Shekhar Ghosh, is working with investment bank Jefferies to sell a 25% to 32% stake to strategic investors. The proposed sale is intended to provide an exit route for some of the company's long-term early investors.
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What The Report Said About The Proposed Stake Sale
The report said IHC and First Abu Dhabi Bank were exploring a strategic investment in BFSL. However, the bank's clarification said it was not aware of any development and had received no communication regarding the reported transaction.
Singapore's GIC and the International Finance Corporation (IFC) jointly hold a 30.3% stake in BFSL, valued at an estimated $500 million to $600 million, according to The Economic Times.
Other shareholders include the Small Industries Development Bank of India (SIDBI), which holds an 8.1% stake; the Financial Inclusion Trust and North East Financial Inclusion Trust, which together hold 40.7%; and the Bandhan Employees' Welfare Trust, which holds 14.6%.
The reported stake sale could provide an exit route for existing long-term investors, according to the report.
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