Kotak Bank shareholders approve stake sale to Sumitomo

Private sector lender Kotak Mahindra Bank today said that its shareholders have approved the selling of 4.5 per cent stake to Japanese financial services major Sumitomo Mitsui Banking Corp for Rs 1,366 crore.

At an extraordinary general meeting, the shareholders approved the allotment of 3.28 crore equity shares at a price of Rs 416.50 a share, aggregating to Rs 1,366 crore, Kotak Mahindra Bank said in a filing to the Bombay Stock Exchange (BSE).

Last month, Kotak Bank has entered into an agreement with Sumitomo to sell 1.64 crore shares, or 4.5 per cent stake, at Rs 833 a piece, for Rs 1,366 crore.

The shareholders today approved subdivision of shares, pursuant to which the number of shares to be alloted to Sumitomo stood at 3.28 crore, the filing added.

The domestic bank had, last month, said that the sale would help the domestic bank boost its cash flow to fund its expansion plans.

This is the first time that a Japanese bank has made investments in a domestic bank. The deal values Kotak Mahindra at over Rs 30,000 crore.

Shares of Kotak Bank closed at Rs 767.35, up 0.58 per cent on the BSE.