Canada pension fund buys stake in Kotak Mahindra Bank
.jpg)
Mumbai: Japan’s Sumitomo Mitsui Banking Corp. on Tuesday sold a large part of the Kotak Mahindra Bank Ltd stake to Canada Pension Plan Investment Board (CPPIB), which manages 268.6 billion Canadian dollars ($203.09 billion) in pension fund assets, according to two people aware of the development.
On Monday, Mint reported that Sumitomo was looking to sell almost half of its stake in the private sector lender for around $300 million (approximately Rs.2,050 crore).
As of 31 December, Sumitomo held a 3.58% stake in the private-sector lender, while CPPIB held about 3.91%, data from stock exchanges show.
“The book was opened last evening. CPPIB has bought the largest chunk of shares on offer. Some foreign institutional investors have also picked up stakes,” said one of the persons mentioned above, requesting anonymity. Domestic institutions did not participate in the share sale, he added.
Shares were offered to buyers in the price range of Rs.611.34-636.55 apiece, according to Bloomberg.
Citigroup Inc. is managing the share sale programme. After the transaction, Sumitomo’s stake in the bank will fall to around 1.79%.
The Japanese bank had picked up a 4.5% stake in Kotak Mahindra Bank in 2010 through a preferential allotment for Rs.1,366 crore.
Apart from its investment in Kotak Mahindra Bank, CPPIB has invested in infrastructure, real estate and private equity industries in India.
CPPIB’s exposure to the Indian infrastructure sector is through a Rs.2,000 crore investment in L&T Infrastructure Development Projects Ltd (L&T IDPL), which was announced in December 2014.
In real estate, the pension fund has partnered with the Shapoorji Pallonji Group and Piramal Enterprises Ltd.
Apart from investing through partnerships, the pension fund also backs domestic private equity funds in its capacity as a limited partner (LP). CPPIB has till date committed $300 million to Renuka Ramnath-led Mulltiples Alternate Asset Management Pvt. Ltd across its two funds. It has also committed $75 million to India Value Fund Advisors.
At 11.25am, shares of Kotak Mahindra Bank were trading at Rs.632.5 on the BSE, up by 0.36%, while the benchmark Sensex was trading at 23,511.96 points, up by 2.22%.
Other Latest News
.webp)
Tata Motors has obtained requisite majority from its shareholders on the scheme of arrangement pertaining to conversion of shares with differential voting rights (DVR) (also known as A-ordinary shares) into ordinary shares. The resolution (Scheme of Arrangement of Tata Motors and its shareholders and creditors under Sections 230 to 232 of the Act) received an overwhelming 99.81 per cent ‘for’ votes, showed a stock exchange filing made by the company.
The shareholder approval will pave the way for Tata Motors to convert its shares with DVR into ordinary shares and thereby simplify its capital structure.
.webp)
During Apple’s quarterly earnings call on May 2, Apple's CEO Tim Cook pointed out generative artificial intelligence as the company’s next frontier. According to a report by 9To5Mac, while talking about Apple’s annual Worldwide Developers Conference (WWDC), which is scheduled for June 10, the Apple CEO said that he is excited to reveal what the company has been working on.
Tim Cook did not point out the AI features that the company is working on for its ecosystem.
.webp)
Former Delhi deputy chief minister Manish Sisodia approached the high court on Thursday seeking bail in the corruption and money-laundering cases lodged by the CBI and the ED respectively in relation to the alleged excise policy scam.
The bail pleas are scheduled for hearing before Justice Swarana Kanta Sharma on Friday.
Sisodia approached the high court after a trial court refused to grant him bail in the matter on April 30.
.webp)
Six Adani Group firms have come under the Securities and Exchange Board of India (Sebi) lens and have received show-cause notices for alleged breaches in related party transactions and non-compliance with listing regulations, said the companies in their regulatory filings to the stock exchanges.
Among these, Adani Enterprises, the flagship of Gautam Adani's business empire, disclosed the receipt of two show-cause notices during the quarter ending on March 31.
.webp)
Abu Dhabi Investment Authority (ADIA) and investment management company KKR have made investments in Reliance Retail Ventures Limited (RRVL) warehousing assets, in a transaction valued at Rs 12,864 crore ($1.5 billion), according to a report in The Economic Times (ET).
This investment is separate from the infrastructure investment trust (InvIT) established by RRVL last year, which was intended to accommodate approximately half of its retail warehousing assets.
.webp)
.webp)
.webp)
.webp)
.webp)
