This Monday, shares of Indian financial services company Bandhan Bank experienced a significant drop. On that day, the bank's stock value fell to ₹153.94, down over 12% from the previous trading day's closing price of ₹175.50. Over the past five trading days, the stock has cumulatively declined by 10.25%.
Earlier reports indicated that Bandhan Bank's majority shareholder, Bandhan Financial Services, is exploring exit options for long-term investors, including GIC Ventures and the International Finance Corporation (IFC), which has led to a notable decline in the company's stock price. It is understood that Bandhan Financial Services plans to achieve this through a private equity sale or an initial public offering (IPO). To assess investor interest, Bandhan Financial Services has engaged global investment bank Jefferies.
According to reports, internal discussions within Bandhan Bank's board suggest that selling shares to private equity investors would yield a higher valuation for Bandhan Financial Services, which holds a 39.74% stake in Bandhan Bank. The board has proposed setting a deadline for the equity sale in June, and if it is not completed by then, an IPO will be considered as an alternative.
This move also aligns with regulatory requirements. According to regulations, Bandhan Financial Services must reduce its stake in Bandhan Bank to 26% by 2030. A source close to the bank revealed, “The majority shareholder currently holds just under 40% of the shares and may consider a phased reduction.”