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March 25, 2022

CPPIB sells 2.02% stake in India’s Kotak Mahindra Bank

Canada Pension Plan Investment Board (CPPIB) has diluted its shareholding in Indian private lender Kotak Mahindra Bank.

According to the data on the Bombay Stock Exchange’s (BSE) website, CPPIB sold 40 million shares or a 2.02% stake in the lender.

The shares were sold in a block deal on BSE at a price of $22.31 (INR1,700), taking the aggregate deal value to about $892.27m (INR68bn).

According to BSE block deal data, The Regents of the University of California bought 11.23 million shares.

Names of the buyers of the remaining shares were not immediately known.

According to the Economic Times report, the floor price of the share sale was fixed between $22.06 (INR1,681.26) and $23.22 (INR1,769.75).

The base deal was for the bank’s 28 million shares, which amounts to 1.41% of the total outstanding shares.

The deal included a greenshoe option of 12 million shares equity shares making up 0.6% of the bank’s total equity base in an event of oversubscription.

As of 31 December 2021, CPPIB owned a 6.47% stake or 126.3 million shares of the bank.

Kotak Mahindra Bank’s promoters held a 25.99% stake in the lender, while foreign and domestic entities owned 42.06% and 15.49% stake, respectively.

In June 2020, Kotak Mahindra Bank managing director Uday Kotak diluted a 2.8% stake in the bank to comply with Reserve Bank of India (RBI) regulations.

The shares were purchased by investors such as CPPIB, Fidelity Funds South East Asia, Goldman Sachs India, JPMorgan, UBS, Invesco Oppenheimer, Regents of the University of California and Aberdeen among others.

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