CreditAccess India BV, a Netherlands-based firm with a 66.56% stake in CreditAccess Grameen, is aiming for a $2.7 billion valuation for the microfinance company, according to a report by Mint. If successful, this deal would become the largest transaction in India’s $51 billion microfinance sector.

To facilitate the sale, CreditAccess India has enlisted investment banks Jefferies, Barclays Investment Bank, and Bank of America to find potential buyers. These banks have reportedly reached out to major financial institutions and privately held banks. As CreditAccess Grameen is a publicly listed entity, the transaction would necessitate an open offer and require approval from both the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).

The report notes that the proposed valuation for CreditAccess Grameen is between Rs 23,000 crore and Rs 24,000 crore, while its current market value is Rs 20,000 crore. Due to the company’s strong interest income margins and unique market position, it could command a 15-20% premium over its present market value. Initial discussions have already attracted interest from several banks.

CreditAccess India BV benefits from support by US-based private equity firm Olympus Capital Asia, the Asian Development Bank (ADB), and various high-net-worth individuals and family offices. CreditAccess Grameen, which had gross loan assets totaling Rs 26,700 crore at the end of FY24, is the largest among the 87 microfinance institutions in India.

Olympus Capital Asia, which specializes in mid-cap Asian companies, holds a 15% stake in CreditAccess India BV. Attempts to reach representatives from CreditAccess India BV, ADB, Olympus Capital Asia, CreditAccess Grameen, and key figures such as Paolo Brichetti, Daniel Mintz, and Frederick Long were unsuccessful. Both Barclays Investment Bank and spokespeople from Jefferies and Bank of America declined to comment. Moneycontrol has not independently verified the report.