Blackstone, Advent, EQT, Kedaara Eyes Significant Stake in Axis Finance

According to Moneycontrol reports, Global private equity firms Blackstone, Advent, EQT and Kedaara have expressed interest in acquiring a 20% stake in Axis Finance. The divestment plans by Axis Bank come amid regulatory pressure to reduce its exposure to its NBFC arm while ensuring stability during the transition.

Private Equity Interest and Potential Takeover Timeline

4 major global private equity players have submitted non-binding bids to acquire approximately 20% stake in Axis Finance, a non-banking financial company promoted by Axis Bank. This minority acquisition could eventually lead to a controlling stake in 2 to 3 years. The staged transaction aims to ensure operational stability and smooth transfer of ownership.

Revised Stake Sale Strategy and Board Participation

Although Axis Bank initially planned to sell at least 50% of its holding, feedback from investors led the bank to lower the offering to a minority stake. Investors desired that Axis Bank retain control during the first few years. Incoming investors may secure 1 or 2 board seats and gain rights to nominate members for key board committees.

Axis Finance's Business Expansion and Capital Infusion

Established in 2010, Axis Finance's assets under management reached ₹39,079 crore by March 31, 2025. Originally focusing on wholesale lending, it diversified into retail loans, including personal and home loans, in 2019. Between FY22 and FY24, Axis Bank has infused ₹1,100 crore into its NBFC subsidiary to support growth and stability.

Read More: NBFCs Like Shriram Finance Set for a Comeback with Policy Support and Lower Rates!

Regulatory Curbs and Capital Constraints

Despite Axis Finance’s healthy capital adequacy of 20.9%, regulatory concerns may limit any further direct investment by Axis Bank. The Reserve Bank of India has already indicated reluctance to allow banks to invest further in NBFCs, pushing the need for alternative capital sources through divestment.

Axis Bank Share Price Performance

On July 8, 2025, Axis Bank share price opened at ₹1,180.00 on NSE, above the previous close of ₹1,175.10. During the day, it surged to ₹1,180.00 and dipped to ₹1,173.00. The stock is trading at ₹1,173.40 as of 9:16 AM. The stock registered a marginal change of -0.14%.

Over the past week, it has declined by 0.08%, over the past month, it has declined by 4.74%, and over the past 3 months, it has moved up by 8.96%.

Conclusion

The entry of prominent private equity firms signals long-term growth confidence in Axis Finance. The strategic move by Axis Bank to gradually reduce stake while retaining control in initial years reflects a cautious approach aligned with regulatory expectations.

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