Japan's Sumitomo Mitsui is likely to soon sell its entire 1.65% stake in Kotak Mahindra Bank through block deals, reported CNBC-Awaaz on September 9 citing sources.
Sumitomo to sell 3.28 crore shares of the private lender to raise Rs 6,000 crore, the channel reported.
FIIs, mutual funds have been approached by brokerages for potential interest in the block deals, added CNBC-Awaaz.
Sumitomo is looking to use the funds for Yes Bank deal, the channel reported.
Floor price for the deal has been fixed at Rs 1,880 per share, which represents 4% discount from the current market price. Jefferies is reportedly the broker for the deal.
Last month, Sumitomo received Reserve Bank of India approval to buy up to 24.99% of Yes Bank.
The Reserve Bank of India has also decided that SMBC would not be treated as a "promoter" of Yes Bank following the deal, which would have involved additional regulatory requirements, Yes Bank said.
Earlier this month, competition regulator CCI also approved the Japanese bank's stake purchase in Yes Bank.
In May, the banks informed exchanges that SBMC had inked a deal to take a 20% stake in Yes Bank for nearly Rs 14,000 crore, making it the largest cross-border merger and acquisition deal in India's financial sector.
The Japanese lender had agreed to buy a 13.19% stake from State Bank of India and an aggregate 6.81% stake from Axis Bank , Bandhan Bank , Federal Bank, HDFC Bank , ICICI Bank , IDFC First Bank and Kotak Mahindra Bank.
On September 9, Kotak Mahindra Bank shares closed trading 0.5% higher at Rs 1,960.4 apiece. The 52-week high of the stock is Rs 2,302 and 52-week low is Rs 1,679.05.
The Mumbai-headquartered private lender reported a 7% year-on-year decline in standalone net profit for the June quarter, at Rs 3,282 crore, down from Rs 3,520 crore a year ago.
The dip in net profit comes despite a healthy rise in the bank’s net interest income (NII), which grew 6% YoY to Rs 7,259 crore in Q1FY26 from Rs 6,842 crore in Q1FY25.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
