Bandhan Bank Ltd. shares rose 8.65% to Rs 170.40 in early trade on Tuesday after The Economic Times reported that Abu Dhabi-based International Holding Company (IHC) and First Abu Dhabi Bank were in early-stage talks to acquire a strategic stake in Bandhan Financial Services Ltd. (BFSL), the bank's promoter entity.
The stock opened at Rs 162, touched an intraday high of Rs 167.90 and a low of Rs 161.51, according to market data. Its previous close was Rs 157.50.
The reported discussions come as BFSL looks to sell a stake of 25% to 32% to strategic investors, potentially providing an exit route for some of its early investors.
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According to The Economic Times, BFSL, led by founder Chandra Shekhar Ghosh, is working with investment bank Jefferies on the proposed stake sale.
The report said IHC and First Abu Dhabi Bank were in the early stages of discussions to acquire a strategic stake in the promoter entity. It did not indicate that a transaction had been finalised.
GIC, IFC Among Existing Investors
Singapore's GIC and the International Finance Corporation (IFC) jointly hold 30.3% of BFSL, a stake estimated to be worth $500 million to $600 million, according to The Economic Times.
Other shareholders include the Small Industries Development Bank of India (SIDBI), which holds 8.1%; 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 proposed stake sale is intended to provide an exit route for long-term early investors, the report said.
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