Indian Bank, PNB to exit credit data firm Experian1 min read . Updated: 26 Sep 2018, 11:21 PM IST
PNB Investment Services Ltd (PNBISL) will manage the sale process on behalf of both the state-run banks
New Delhi: Punjab National Bank (PNB) and Indian Bank plan to sell their entire stake in Experian Credit Information Company of India Pvt. Ltd, according to a bid document issued on Wednesday.
PNB Investment Services Ltd (PNBISL) will manage the sale process on behalf of both the state-run banks. PNB holds a 3% stake in Experian, while Indian Bank owns 2.14%.
“PNBISL invites bids from potential investors for purchase of 42,00,000 shares held by PNB representing 3% and 30,00,000 shares held by IB (Indian Bank) representing 2.14% in Experian," according to the document.
Based on the floor price of ₹ 70 per share, PNB would garner nearly ₹ 29 crore and Indian Bank about ₹ 21 crore from the stake sale. Bids can be submitted until 28 September.
Experian was set up in 2010 by Gus Holdings BV, Netherlands, and some domestic public and private sector banks and non-banking financial companies to provide credit information services.
Gus Holdings BV has the majority stake of 66.72% in Experian, Federal Bank 2.14%, Aravali Investment Holdings, Mauritius 10%, VIC Enterprises 5%, Sundaram Finance 8% and Magma Fincorp Ltd 3%. Last year, Axis Bank sold its 10% stake in the credit information company to Mauritius-based investment firm West Bridge Capital for ₹ 64 crore.
Besides Experian, there are three other credit bureaus in India namely, Credit Information Bureau of India Ltd (CIBIL), Equifax India and High Mark Credit Information Services.