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03-27-2012, 10:33 AM #1
Warburg sells 3.6% stake in Kotak Mahindra Bank for Rs 1,400 cr
Global private equity major Warburg Pincus today sold its 3.6 per cent stake in Kotak Mahindra Bank for about Rs 1,400 crore, marking its exit from the Indian private sector bank.
When contacted, Kotak Mahindra Bank chief financial officer Jainmin Bhatt confirmed that there was a block deal in the bank's shares at the NSE this morning, but said that the name of the buyer or the seller would be known only by the end of the day.
Sources, however, confirmed that that the shares were sold by Warburg Pincus at an average price of Rs 530 per share and Kotak Institutional Advisers advised on the sale.
The Kotak Mahindra Bank shares on Monday closed 1.18 per cent higher at Rs 530.95 at the BSE, although the overall market sentiments were weak and the benchmark Sensex plunged by 1.8 per cent or 309 points.
This is the second time in as many months that Warburg has sold shares of the bank. On February 2, it sold about 17.5 million shares of Kotak Bank through stock market deals, raising about $170 million (about Rs 800 crore).
Wargbug had picked up stake in Mumbai-based private sector lender in 2004, and Monday's deal marks its exit.
Since February, this is the fifth deal, involving a foreign investor selling shares in an Indian financial sector entity. The experts say that the foreign investors have mostly sold off their holdings to gain from a robust rally in the Indian markets, particularly in the banking and financial services space.
Among various deals, Citigroup has sold its entire 9.9 per cent stake in HDFC for $1.9 billion, and Khazanah Nasional of Malaysia quit Yes Bank for $110 million, raking in a 150 per cent profit in the second week of this month.
On February 2, Carlyle had sold 1.3 per cent of its stake in HDFC for about $270 million (Rs 1,354 crore), and a week later, on February 8, Temasek Holdings, the state investment group of the Singapore government, had also sold 1.4 per cent of its stake in the country's largest private lender ICICI Bank for $299 million.