Kotak Mahindra Bank Shareholder to Sell ₹2,066 Crore Stake in Block Deal

DOWNLOAD IPFS

A shareholder of Kotak Mahindra Bank is planning to sell a ₹2,066 crore stake in the private sector lender through a block deal. The transaction involves the sale of 1.05 crore equity shares, representing around 0.5 percent of the bank’s total equity.

The shares are expected to be sold at a floor price of ₹1,955 apiece, slightly below the current market price. The identity of the seller has not been disclosed, but sources suggest the move is part of portfolio rebalancing by an institutional investor.

Kotak Mahindra Bank shares have remained resilient in recent months, supported by strong fundamentals, stable asset quality, and consistent earnings growth. The upcoming stake sale is not expected to affect the bank’s operations or financial stability.

Analysts view this as a routine transaction and believe the bank’s long-term prospects remain intact. They also note that the deal may attract institutional buyers looking to increase exposure to quality banking stocks at relatively attractive valuations.

The stock has seen occasional bulk and block deals in the past, indicating ongoing interest from large investors. In a previous instance last month, a smaller block deal was executed involving 2.18 lakh shares at a higher average price of ₹2,220 per share.

Despite the block sale, market experts maintain a positive outlook on Kotak Mahindra Bank, citing its strong retail and corporate banking franchise, healthy capital adequacy, and digital growth initiatives.