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Kotak Mahindra Bank Ltd’s shares has gained as much 5 per cent after a huge block deal which saw around 56 million shares changing hands in bunched trade, Bloomberg reported.
Though the details of the buyers and sellers were not known, the bank’s promoter Uday Kotak was expected to sell up to 56 million shares through a block deal today to reduce his stake in the bank to 26.1 per cent to meet RBI regulations.
At 9.20 am, the Kotak Mahindra Bank stock was at Rs 1,312 on the BSE, up 4.9 per cent from previous close. Earlier, these shares will be priced between Rs 1,215 and Rs 1,240 and will constitute 2.83 per cent of the total equity shares outstanding. Based on these share prices, the deal will be valued between Rs 6,804-6,944 crore, Livemint reported.
The placement agents for this deal are Kotak Securities Ltd, Morgan Stanley India Company Pvt Ltd and Goldman Sachs (India) Securities Pvt Ltd. In January, Kotak Mahindra Bank and Reserve Bank of India (RBI) had reached an agreement under which Kotak agreed to reduce his stake over a period of time. Under the agreement, the promoter stake has to be brought down to 26 per cent by August. The promoter stake in the bank now stands at 28.93 per cent.
The promoter will still have to trim another 0.1 per cent in the bank to comply with RBI guidelines and the person cited above said it would also be completed before the deadline.
