Blackstone and Kedaara Capital Submit Bids to Acquire 20% Stake in Axis Finance

In a key development in India’s financial services sector, Blackstone and Kedaara Capital have reportedly submitted bids to acquire a 20% stake in Axis Finance, the non-banking financial arm of Axis Bank, according to CNBC-TV18. The deal, estimated at around $350–400 million, reflects renewed investor interest in India’s growing NBFC segment.

Deal Details and Context

As per CNBC-TV18, one strategic player is also evaluating participation in the race. The proposed transaction size has been revised from the earlier plan of a 50% stake sale valued between $800 million and $1 billion to a 20% stake sale.

Axis Bank, in its recent earnings call, stated that it would await the Reserve Bank of India’s (RBI) final decision regarding the transaction. The bank clarified that its decision to monetise a stake in Axis Finance was motivated by capital needs and strategic realignment of its NBFC portfolio.

Background

As per the news reports, earlier, Blackstone, Advent International, EQT Partners, Kedaara Capital, and Warburg Pincus were among the firms exploring an investment in Axis Finance. This move aligns with the ongoing consolidation trend in India’s financial sector, as global investors look to expand their footprint in the country’s lending and consumer finance space.

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Conclusion

If finalised, the deal could strengthen Axis Finance’s capital base and attract global institutional expertise to its lending operations. Both Axis Bank and the potential bidders have yet to issue official comments on the ongoing discussions.

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