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Private equity majors Kedaara Capital and Blackstone have submitted bids to acquire around 20 percent stake in Axis Finance, the non-banking finance arm of Axis Bank, multiple sources told CNBC-TV18.
A strategic player is also said to be in the fray. The proposed deal, sources said, has been scaled down from an earlier plan to sell up to 50 percent stake for about $800 million–$1 billion, to a smaller transaction of 20 percent for roughly $350–400 million.
Earlier, investors including Advent International, EQT, Warburg Pincus, and Kedaara Capital had evaluated a potential investment in Axis Finance. Both Axis Bank and the private equity firms did not respond to CNBC-TV18’s queries.
Axis Finance has drawn strong investor interest on the back of robust financial performance and steady growth across its lending verticals. The company operates five key business lines — corporate loans, real estate funding, collateralised lending, MSME, and retail funding.
Also Read: Axis Bank says Axis Finance could be classified as Upper Layer NBFC; focuses on growth
As of March 2025, Axis Finance reported a profit after tax of ₹676 crore, up 11 percent year-on-year, with assets under finance of ₹39,000 crore. The company contributed 38 percent to Axis Bank’s total subsidiary earnings.
Its AUM grew 22 percent year-on-year, while the loan book expanded at a CAGR of about 31 percent between FY22 and FY25. Asset quality has remained healthy with net NPAs at 0.37 percent and a capital adequacy ratio of 20.9 percent. The company reported a return on equity of 14.5 percent in FY25.
During its latest earnings call, Axis Bank management said that Axis Finance could be classified as an Upper Layer NBFC in the future under the Reserve Bank of India’s scale-based regulatory framework. However, management clarified there was no specific timeline for when that reclassification might occur.
Axis Bank also said that any decision regarding Axis Finance, whether a stake sale or an IPO, will be guided by the company’s capital requirements and will depend on regulatory approvals from the RBI.
A strategic player is also said to be in the fray. The proposed deal, sources said, has been scaled down from an earlier plan to sell up to 50 percent stake for about $800 million–$1 billion, to a smaller transaction of 20 percent for roughly $350–400 million.
Earlier, investors including Advent International, EQT, Warburg Pincus, and Kedaara Capital had evaluated a potential investment in Axis Finance. Both Axis Bank and the private equity firms did not respond to CNBC-TV18’s queries.
Axis Finance has drawn strong investor interest on the back of robust financial performance and steady growth across its lending verticals. The company operates five key business lines — corporate loans, real estate funding, collateralised lending, MSME, and retail funding.
Also Read: Axis Bank says Axis Finance could be classified as Upper Layer NBFC; focuses on growth
As of March 2025, Axis Finance reported a profit after tax of ₹676 crore, up 11 percent year-on-year, with assets under finance of ₹39,000 crore. The company contributed 38 percent to Axis Bank’s total subsidiary earnings.
Its AUM grew 22 percent year-on-year, while the loan book expanded at a CAGR of about 31 percent between FY22 and FY25. Asset quality has remained healthy with net NPAs at 0.37 percent and a capital adequacy ratio of 20.9 percent. The company reported a return on equity of 14.5 percent in FY25.
During its latest earnings call, Axis Bank management said that Axis Finance could be classified as an Upper Layer NBFC in the future under the Reserve Bank of India’s scale-based regulatory framework. However, management clarified there was no specific timeline for when that reclassification might occur.
Axis Bank also said that any decision regarding Axis Finance, whether a stake sale or an IPO, will be guided by the company’s capital requirements and will depend on regulatory approvals from the RBI.
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