kotak: Canada Pension To Sell Kotak Stake Worth ₹7.1k Cr | India Business News – Times of India


MUMBAI: Canada Pension Plan Investment Board (CPPIB), one of the biggest foreign investors in India, is selling 4 crore shares, representing a 2% stake in Kotak Mahindra Bank for nearly Rs 7,100 crore through block deals. According to the term sheet for the deal, CPPIB is selling the shares at a price band of Rs 1,681-1,770 per share. The lower end of the band is at a 5% discount to Kotak Bank’s Wednesday close on the BSE at Rs 1,768.
The base size of the deal is for 2.8 crore Kotak Bank shares for up to Rs 4,955 crore. The seller also has the option to offload an additional 1.2 crore shares for another Rs 2,137 crore, the deal’s term sheet showed.
According to the latest available shareholding data for Kotak Bank on the BSE, CPPIB had a 6.4% stake in the private sector lender. After the close of this deal, its stake will come down to about 4.4%.
The deal is set to be executed through the accelerated book building process, market players said. Under this process, the broker managing the deal, after the close of the day’s trading, sends out the term sheet to large institutions to express their interest to buy shares from the block on offer. Once these institutions inform the broker managing the offer, the book for the deal is prepared. After the book is built, the shares change hands the next day on the bourses in large blocks.


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