Signage of Kotak Mahindra Bank seen at one of its branch in Bengaluru, India. (Photographer: Anirudh Saligrama/BloombergQuint)

Kotak Mahindra Bank Gains After Block Deal

Shares of Kotak Mahindra Bank Ltd. rose as much as 1.8 percent to Rs 1,150 apiece after a block deal on the National Stock Exchange Ltd.

About 1.27 crore shares (or 0.7 percent equity) changed hands in pre-open trading at Rs 1,130 apiece, according to exchange data. The buyers and sellers were not immediately known. The total value of the block is more than Rs 1,400 crore.

However, BloombergQuint had reported yesterday that ING Group planned to sell its remaining stake in Kotak Mahindra Bank worth about $1 billion via block deals, according to two people privy to the development.

ING Group held 3.7 percent in the private lender as of September, according to an exchange filing. The proceeds are expected to be used to augment its capital adequacy requirements back home, one of the people said.

ING Group has been one of the large public shareholders in Kotak Mahindra Bank after merging its Indian banking unit, ING Vysya Bank, with the lender in November 2014. It held 6.5 percent stake in the merged entity and has since offloaded shares. In 2016, the Dutch group sold nearly 2.5 percent to Kotak Mahindra Bank.