Shares of #BandhanBank Ltd fell sharply on Monday, hitting lower circuit in the afternoon trade after reports that its promoter, Bandhan Financial Services, is exploring options such as a stake sale or an IPO (initial public offering) to facilitate exits for long-term investors. Bandhan Bank stock was locked at the 10 percent lower circuit of Rs 157.95, also making it the top loser on the BSE Midcap index. The stock had gained roughly 30 percent in the one year prior to today’s fall.

Bandhan Financial Services has engaged global investment banker Jefferies to explore potential options, including selling shares to private equity investors or launching an IPO, reported The Economic Times, citing unidentified sources. The move is aimed at providing an exit route for long-term institutional investors such as International Finance Corporation (IFC) and GIC Ventures, while also helping address regulatory requirements related to promoter shareholding in Bandhan Bank. Promoter group entities own 39.74 percent stake in the bank.