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Bandhan Bank share price jumped over 8%, hitting an intraday high of ₹171.68 per share on NSE, in Tuesday's trading session following reports that Abu Dhabi-based International Holding Company (IHC) was among the investors holding preliminary discussions to acquire a stake in the lender’s promoter, Bandhan Financial Services (BFSL).
IHC is the investment firm of Sheikh Tahnoon bin Zayed Al Nahyan, Abu Dhabi’s deputy ruler and national security adviser. According to an Economic Times (ET) report, BFSL holds slightly more than one-third of Bandhan Bank’s equity.
The proposed stake sale could also provide an exit route for Singapore’s sovereign wealth fund GIC and the International Finance Corporation (IFC), which have backed the business for over a decade, the report said.
As of March 31, BFSL held 59.98% in Bandhan Asset Management Company and 97.16% in Bandhan Life Insurance Company. GIC and ChrysCapital are among the other investors in the asset management business.
Bandhan Financial Holdings Ltd held a 37.5% stake in Bandhan Bank at the end of June. Under the Reserve Bank of India’s licensing requirements, the promoter is required to bring its shareholding down to 26% by 2030.
The report further noted that several Gulf-based banks and sovereign wealth funds have been approached regarding a potential investment in BFSL. These reportedly include First Abu Dhabi Bank and the Qatar Investment Authority, along with private equity firms such as Carlyle and EQT.
Bandhan Bank shares have gained 3.23% over the past week, indicating a recent recovery in the stock. However, the stock has declined 4.01% over the past month.
Over a longer period, Bandhan Bank shares have delivered positive returns of 17.53% year to date, while gaining a modest 0.58% over the past year.
The bank’s long-term performance has been weaker, with its share price declining 29.60% over three years and 48.36% over five years.
Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, said that Bandhan Bank shares can be considered for a trading opportunity with a stop-loss below ₹154.
“The stock could move towards ₹178–185 in the initial phase, with a potential upside target of ₹194 if the upward momentum sustains. Traders should maintain strict risk management and monitor price action around key levels before taking a position,” Ojha said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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