Bandhan Financial Services is actively exploring exit options for its long-term investors, including GIC Ventures and International Finance Corp (IFC). According to reports from The Economic Times, the company has engaged global investment banker Jefferies to gauge investor interest, particularly from private equity funds. The Bandhan Financial board discussed this issue at its meeting on Monday, with two possible routes under consideration: selling shares to private equity funds or floating an initial public offer.
The exit exercise aligns with regulatory mandates requiring Bandhan Financial to reduce the promoter's stake in Bandhan Bank to 26% by 2030. As reported by The Economic Times, the promoter currently holds a little below 40% and may consider a phased reduction. The board discussed that a sale to private equity investors could fetch higher valuation for Bandhan Financial Services, which owns 39.74% in Bandhan Bank and operates an asset management company, life insurance company, and technology company.
According to the latest data reported by The Economic Times, Caladium Investment Pte, an investment vehicle for GIC Ventures, held 16.7% in BFSL while IFC owned 13.6% as of March 31, 2025. Local development finance institution Small Industries Development Bank of India (Sidbi) held 8.1% in it. Financial Inclusion Trust and North East Financial Inclusion Trust together owned 40.7% while Bandhan Employees' Welfare Trust held 14.6% at the same time.
The beginning of the sale exercise coincides with recovery of Bandhan Bank's business performance in the microfinance vertical, which was under severe asset quality stress over the past two years. As reported by The Economic Times, BFSL's net profit for the nine-month period is likely to be around ₹285 crore, significantly higher than FY25's ₹104 crore. The board has suggested a June deadline for the private stake sale, after which focus will shift fully to IPO if the private sale does not materialize.
According to The Economic Times, IFC has remained invested in BFSL since 2011 while GIC invested in it in 2015 to help the transition of Bandhan Bank from a microfinance company. Currently, BFSL's sole business is managing investment and owns 100% in Bandhan Financial Holdings, which was created in 2013 as the non-operating financial holding company in compliance with RBI's private bank licensing guidelines.
