SMBC Sells Rs 6,256 Cr Stake in Kotak Mahindra Bank; ADIA, BlackRock, Goldman Sachs Among Major Buyers

On Wednesday, a major block deal involving Kotak Mahindra Bank Ltd. shares took place, marking a notable transaction in India's banking sector. Japan's Sumitomo Mitsui Banking Corporation (SMBC) sold 3.22 crore shares valued at Rs 6,256 crore, with each share priced at an average of Rs 1,941. This large-scale sale attracted a mix of prominent domestic and international investors, signaling strong market interest.

SMBC Offloads Rs 6,256 Cr Stake in Kotak Mahindra Bank; ADIA, Goldman Sachs, BlackRock Among Key Buyers

Among the key buyers were the Abu Dhabi Investment Authority (ADIA), Goldman Sachs Bank Europe SE and BlackRock Global Funds; India Fund (BGF India Fund). Other notable participants in the deal included Amundi Funds; Emerging Markets Equity Focus and BofA Securities Europe SA. Several mutual funds and financial institutions also acquired significant portions of the shares, underscoring the broad appeal of Kotak Mahindra Bank's stock.

Kotak Mahindra Share Price Today

Following the block deal, Kotak Mahindra Bank Ltd's fully paid ordinary shares were trading at Rs 1,980.00 as of 12:29 pm on September 11, reflecting a modest increase of Rs 6.70 or 0.34% for the day. The stock opened slightly lower at Rs 1,977.00 but gained momentum to reach an intraday high of Rs 1,983.00.

It also dipped to a low of Rs 1,963.30 during the session, indicating some volatility within the trading day. Over the past 52 weeks, the stock has experienced a wide range, with a high of Rs 2,301.90 and a low of Rs 1,679.05.

Here is a breakdown of the number of shares purchased by various funds during the transaction:

Below is a detailed summary of the shares acquired by key investors in the recent block deal of Kotak Mahindra Bank Ltd as per CNBC-TV18 report.

• Aditya Birla Sun Life Mutual Fund acquired 2.12 lakh shares.
• Abu Dhabi Investment Authority bought 1.33 lakh shares.
• Amundi Funds, Emerging Markets Equity Focus purchased 67,000 shares.
• Bandhan Mutual Fund acquired 95,000 shares.
• BlackRock Global Funds, India Fund bought 3.29 lakh shares.
• BofA Securities Europe SA purchased 2.3 lakh shares.
• Goldman Sachs Bank Europe SE acquired 74,000 shares.
• Goldman Sachs Investments (Mauritius) I Ltd bought 93,000 shares.
• Copthall Mauritius Investment acquired 93,000 shares.
• Citigroup Global Markets Mauritius purchased 93,000 shares.
• BNP Paribas Financial Markets acquired the largest chunk among these with 5.78 lakh shares.
• Bajaj Allianz Life Insurance bought 2.92 lakh shares.

SMBC's Growing Moves in India's Banking Sector

Beyond the block deal with Kotak Mahindra Bank, Sumitomo Mitsui Banking Corporation is actively making strategic investments in the Indian banking space. Last month, SMBC received approval from the Reserve Bank of India to acquire up to a 25% stake in Yes Bank, one of India's leading private sector banks. This acquisition is currently subject to further approvals from the Competition Commission of India and other regulatory conditions.

The planned investment involves SMBC acquiring up to a 20% stake in Yes Bank through a secondary share sale valued at over Rs 13,483 crore. If completed, this move will make SMBC the largest shareholder in Yes Bank. The shares will be purchased from a consortium led by the State Bank of India, which had stepped in to rescue Yes Bank during its liquidity crisis in 2020.