Kolkata-based micro finance firm Bandhan Financial, the parent of start-up bank Bandhan, is in talks with global private equity funds to sell about 30% stake which is aimed to raise about $400m for the new bank and aid its expansion plans.
As per the rules set by RBI, an individual shareholder cannot hold more than 5% stake in an Indian bank and therefore, the fund raising plan.
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The sale will value the firm at $1.3bn, with Kotak Mahindra Capital mandated to help Bandhan with its fund raising initiative.
A managing director of a global private equity fund stated: "Global buyout funds have been approached to purchase stake in the parent company of the upcoming Bandhan Bank. The idea is to get not more than two PE funds on board who can pump in around$200 million each."
An Information Memo underlining the basic conditions of the deal has been already sent to various buyout funds including TPG Capital, Kohlberg Kravis and Roberts, Warburg Pincus, Bain Capital and Barings Asia.
Bandhan records a gross loan portfolio of about Rs 5,700 crore as of March 2014, and operates with 2,016 branches across different under-banked parts of India.
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By GlobalDataThe company plans to start its banking operation by next year.
