Bandhan jumps 7% as Sheikh eyes a $600 mn stake
Bandhan Bank shares surged nearly 7% on Tuesday, reaching a peak of Rs 167.90 on the NSE. This surge followed reports that Abu Dhabi-based investment company IHC was in preliminary talks to acquire a stake in Bandhan Financial Services (BFSL). BFSL holds a significant 59.98% stake in Bandhan Bank, along with 97.16% of Bandhan Life Insurance Co. The move by IHC, the investment firm of Abu Dhabi's deputy ruler and national security adviser, aims to provide early-stage financial investors with an opportunity to sell stakes and offer an exit path for long-term investors like GIC of Singapore and the International Finance Corporation.
BFSL's strategic investors, including Jefferies and various trusts, collectively own nearly 30.3% of the firm, valued at $500-600 million. If any shareholder opts to exit, the transaction could become even larger. BFSL's ownership of Bandhan Bank and Bandhan Life Insurance Co. further strengthens its influence.
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