Sumitomo Mitsui sells 1.8% stake in Kotak Bank

Canada Pension Plan Investment Board picked up chunk of this stake for Rs 2,084 cr

Japan-based Sumitomo Mitsui Banking Corporation on Tuesday sold 1.8 per cent stake in Kotak Mahindra Bank for Rs 3,433 crore, block deal data showed. Canada Pension Plan Investment Board picked up shares worth Rs 2,084 crore (18.1 million shares, or 1 per cent stake) at Rs 636.25 apiece. The remaining shares (14.7 million shares, or 0.8 per cent stake) were sold at Rs 623.95 apiece to unknown buyers.

At the end of December 2015 quarter, Sumitomo held around 3.6 per cent stake in Kotak Mahindra Bank.

This is a second block transaction in a private lender in as many days. On Monday, California Public Employees Retirement System, one of US's biggest pension fund, had sold 0.94 per cent equity in Axis Bank at Rs 387.5 to mop up Rs 869 crore. The shares were bought by Genesis Indian Investment Company, data provided by exchanges showed.

Shares of Kotak Mahindra Bank on Tuesday closed at Rs 637.75, up 1.2 per cent, while that of Axis Bank ended at Rs 391.9, up 4.44 per cent. The benchmark Sensex on Tuesday gained 3.4 per cent.

Kotak Mahindra and associates are significant shareholders in Business Standard Private Limited