Bandhan Bank share price jumped over 8%, hitting an intraday high of ₹171.68 per share on NSE, in Tuesday's trading session following reports that Abu Dhabi-based International Holding Company (IHC) was among the investors holding preliminary discussions to acquire a stake in the lender’s promoter, Bandhan Financial Services (BFSL).
IHC is the investment firm of Sheikh Tahnoon bin Zayed Al Nahyan, Abu Dhabi’s deputy ruler and national security adviser. According to an Economic Times (ET) report, BFSL holds slightly more than one-third of Bandhan Bank’s equity.
The proposed stake sale could also provide an exit route for Singapore’s sovereign wealth fund GIC and the International Finance Corporation (IFC), which have backed the business for over a decade, the report said.
As of March 31, BFSL held 59.98% in Bandhan Asset Management Company and 97.16% in Bandhan Life Insurance Company. GIC and ChrysCapital are among the other investors in the asset management business.
Bandhan Financial Holdings Ltd held a 37.5% stake in Bandhan Bank at the end of June. Under the Reserve Bank of India’s licensing requirements, the promoter is required to bring its shareholding down to 26% by 2030.