Mumbai: Japanese investment major Sumitomo Mitsui Banking Corporation (SMBC) has offloaded its remaining 1.65% stake in Kotak Mahindra Bank on Wednesday, September 10, after nearly 2.86 crores of the lender changed hands in a block deal before the opening session.
The shares were sold at an average price of Rs.1,941 per share, valuing the deal at Rs. 5,559 crore. Following the news, shares of Kotak Mahindra Bank rose 1%.
As India’s fourth-largest private sector lender, Kotak Mahindra Bank has been one of the stock markets star performers, giving investors about 2000% returns on their investments made before 2005. SMBC first invested in Kotak Mahindra in 2010, holding a 4.5% stake in the company.
Last month, the Reserve Bank of India (RBI) approved SMBC’s intention to acquire a majority stake in Yes Bank, following its acquisition of up to 20% from a consortium of investors, including the State Bank of India, HDFC, and others, who had rescued the bank during its 2020 liquidity crisis.
This stake sale is part of the Japanese lenders’ rebalancing act as it looks to acquire up to 25% in the company, subject to clearance from the Competition Commission of India (CCI) and other regulators.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
