Shares of Bandhan Bank jumped nearly 10 percent on Tuesday and the bank’s stock touched Rs 172.80 on the BSE during the trading session. The jump came after reports that Abu Dhabi’s IHC was involved in initial talks to buy a stake in the bank’s promoter, Bandhan Financial Services (BFSL). IHC is the investment company of Sheikh Tahoun bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi and National Security Advisor. According to an ET report, BFSL owns a little more than one-third stake in Bandhan Bank. According to the report, the move is aimed at giving early-stage financial investors an opportunity to sell their stake. Earlier on March 13, there was a media report that BFSL was considering an exit opportunity for its long-term investors.

Old investors will get an exit

Media reports also state that the stake sale will pave the way for an exit for Singapore’s GIC and the International Finance Corporation (IFC), which has been backing the company for more than a decade. Bandhan Financial Services is working with consultancy Jefferies to find strategic investors for a 25-32% stake. At the end of March, the duo held about 30.3% stake in BFSL and are seeking a full or partial exit. His share alone could be around $500-600 million. Some of the other investors include SIDBI, Financial Inclusion Trust, North East Financial Inclusion Trust and Bandhan Karamkara Kalyan Trust. The report also said that if any other shareholder decides to exit, it would be a massive transaction.

How much share does BFSL hold?

As of March 31, BFSL held 59.98% stake in Bandhan AMC and 97.16% in Bandhan Life Insurance Company. Singapore’s GIC and Chris Capital are other investors in the asset management firm. Bandhan Financial Holdings Limited held a 37.5% stake in the bank at the end of June. As per the licensing agreement with the Reserve Bank of India, the bank has to reduce its stake to 26 percent by 2030. The report also said that extensive negotiations have been held with banks and sovereign wealth funds in Gulf countries for a stake in BFSL. These include First Abu Dhabi Bank and Qatar Investment Authority, as well as several PE buyout funds such as Carlyle and EQT.

Huge rise in bank shares

After this news, the shares of the bank saw a huge jump. During the trading session, the shares of the company rose nearly 10 percent to Rs. was seen at 172.80. Shares of the bank rose 9.31 percent to Rs. 172 was reached. However, on Monday, the bank’s shares traded at Rs. 157.35 on Tuesday against Rs. opened at 161.80. However, on July 25, the bank’s shares traded at Rs. It hit a 52-week high of 220.70.