Bandhan Bank shares rise as Abu Dhabi’s IHC explores stake in promoter BFSL

Bandhan Bank said it was unaware of any reported stake sale involving promoter entity Bandhan Financial Services and had received no communication on the matter, following a report that Abu Dhabi-based investors were exploring a strategic investment.

Bandhan Bank shares surged 7.4% to Rs 169 on Tuesday following reports that Abu Dhabi-based International Holding Company (IHC) was exploring an investment in the lender's promoter entity, Bandhan Financial Services (BFSL).The stock emerged as the leading midcap gainer, taking its 2026 gains to 17.2%, compared with a 14% decline in the Nifty 50.The bank's market capitalisation stood at approximately Rs 27,210 crore.Bandhan Bank CFO Rajeev Mantri Resigns, To Step Down On September 25 After Nearly 19 Months In Role IHC Exploring 25-32% Stake In BFSLAccording to The Economic Times, IHC, associated with Abu Dhabi Deputy Ruler Sheikh Tahnoon bin Zayed al-Nahyan, is holding preliminary discussions about acquiring a stake in BFSL.The promoter entity has reportedly engaged investment bank Jefferies to identify strategic investors for a proposed 25-32% stake sale.The transaction could allow existing institutional shareholders, including Singapore's GIC and the International Finance Corporation (IFC), to exit their investments.GIC, through Caladium Investment, owns 16.7% of BFSL, while IFC holds 13.59%.Their combined stake of approximately 30.3% could be valued at $500-600 million, according to the report.Both institutions have remained invested since 2014 and are reportedly considering opportunities to monetise their holdings. Restructuring May Help Meet RBI Promoter Stake RulesThe potential investment forms part of a broader restructuring exercise involving shareholder exits, asset monetisation and capital mobilisation.Moneycontrol previously reported that Jefferies was advising the group on what could become its first major restructuring in nearly 25 years.The exercise could also involve partial stake sales in Bandhan Bank and its asset management business.BFSL subsidiary Bandhan Financial Holdings owns approximately 60% of Bandhan AMC, while GIC and ChrysCapital collectively hold 40%.A share buyback at BFSL is another possibility, although its Rs837 crore cash balance as of March 31, 2026, could limit the transaction.Valuation concerns could also complicate stake sales.Meanwhile, Bandhan Financial Holdings held 37.5% of Bandhan Bank at the end of June 2026.Under the bank's licensing conditions, promoter shareholding must decline to 26% by 2030.A direct stake sale in the bank could help meet this requirement, while investment in BFSL would primarily provide liquidity to holding-company shareholders.

Bandhan Bank shares jumped nearly 7% after reports that Abu Dhabi-based IHC was in early-stage discussions to acquire a promoter stake in Bandhan Financial Services, potentially giving existing investors an exit opportunity.

Bandhan Financial Services is reportedly working with Jefferies to sell a 25% to 32% stake, with Abu Dhabi's International Holding Company and First Abu Dhabi Bank among the potential strategic investors in early-stage talks.

Early investors GIC & IFC jointly hold 30% in Bandhan Financial Services (BFSL), keen to exit. PE funds tapped too to gauge strategic interest. BFSL, led by Bandhan founder Chandra Shekhar Ghosh, has been working with advisers Jefferies to find strategic investors for 25-32%.