Warburg exits Kotak Bank, sells 3.6% holding for R1,400 crore

Written by Press Trust of India | Mumbai | Updated: Mar 27 2012, 06:02am hrs
Global private equity major Warburg Pincus on Monday sold its 3.6% stake in Kotak Mahindra Bank for about R1,400 crore, marking its exit from the Indian private sector bank.

Kotak Mahindra Bank chief financial officer Jainmin Bhatt confirmed that there was a block deal in the banks 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 R530 per share and Kotak Institutional Advisers advised on the sale.

The Kotak Mahindra Bank shares on Monday closed 1.18% higher at R530.95 at the BSE, although the overall market sentiments were weak and the benchmark Sensex plunged by 1.8% 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 R800 crore).

Wargbug had picked up stake in Mumbai-based private sector lender in 2004, and Mondays 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% stake in HDFC for USD 1.9 billion, and Khazanah Nasional of Malaysia quit Yes Bank for $110 million, raking in a 150% profit in the second week of this month.