Kotak sells ₹6.9K-cr in Mahindra Bank shares to meet RBI rules

MUMBAI:Uday Kotak on Tuesday sold 56 million shares in Kotak Mahindra Bank Ltd for at least ₹6,913.75 crore through a block deal to reduce his stake in the bank to 26.1%, close to the promoter holding level allowed by the Reserve Bank of India (RBI).

According to BSE data, buyers of the shares included the Regents of the University of California (₹680.75 crore), Oppenheimer Developing Markets Fund (₹662.92 crore), SBI Mutual

Fund (₹408.46 crore), JP Morgan Securities Ltd (₹506.91 crore), Aditya Birla Sun Life Mutual Fund (₹385.77 crore), Canada Pension Plan Investment Board (CPPIB) (₹378.33 crore), Fidelityowned funds (₹350.21 crore), Stichting Depositary APG Emerging Markets Equity Pool (₹297.95 crore), Aberdeen Asset Management Asia Ltd (₹287.43 crore), T. Rowe Price International Inc. (₹204.36 crore), Government of Singapore Investment Corp. Pte Ltd (₹204.36 crore), Axis Mutual Fund (₹204.23 crore), Europacific

Growth Fund (₹174.20 crore) and ICICI Prudential Life Insurance Co. Ltd. (₹151.28 crore).

Kotak, who had a prolonged disagreement with the central bank over his personal holding in the private lender, had moved the Bombay high court in December 2018 against an RBI’s diktat on promoter holding in banks.

Tuesday’s block deal will help Kotak sell 2.83% stake in the bank in the secondary market, ending the stalemate between the central bank and the private bank’s promoter.