Dutch financial armed forces main ING Group on Friday sold its complete 3.06 percent stake in Kotak Mahindra Bank, the country's fourth-largest private-sector lender by assets, through two chunk deals on the National Stock Exchange. With ING Group's exit, Mark Newman, a non-executive non-independent director at Kotak Bank, has submissive with instant result.
According to swap data, ING Mauritius Investments sold 5.84 crore Kotak Mahindra Bank shares through bulk deals on the NSE for Rs 7,171.21 crore ($1 billion) before secretarial for statutory levies and transaction costs. However, the bank did not reveal the name of the buyers. However, the bank did not disclose the name of the buyers.
In his acceptance letter, Mark Newman request the board of directors of the bank to sanction and support all essential actions and filings counting filing of necessary e-forms with the Registrar of Companies, as necessary to be made by the bank.
In November 2014, Kotak Mahindra Bank acquired Bengaluru-headquartered ING Vysya Bank in an all-stock deal. ING was the largest shareholder in Vysya with a shareholding at the time of statement of the merger of 42.7 percent. Under the terms of merger conformity, ING held a stake of 6.5 percent in the mutual company, which will operate under the Kotak brand. In the last four year, ING Group has sold more than half of its holding in the lender.
Weighed down by the development, shares of Kotak Mahindra Bank closed 3.71 percent lower at Rs 1,241.05 apiece, compared to the previous close of Rs 1,288 on Bombay Stock Exchange. The stock fell as much as 4.26 percent to touch an intra-day low of 1,234 after opening 2.9 percent lower at Rs 1251.
Kotak Bank was amongst the top laggards on the Bombay Stock Exchange, with 46.65 lakh shares varying hand over the counter as compare to a two-week average of 5.41 lakh shares.
The bank reported a 22.5 percent year-on-year (YOY) rise in impartial net profit at Rs 1,290.93 crore for December 2018 quarter, against Rs1053.21 crore for Dec-17.