The second highest buyer of shares was Oppenheimer Developing Markets Fund
The Regents of the University of California, a US-based endowment fund, has emerged as the top buyer in the mega Rs 6,900-crore block deal launched by banker Uday Kotak to reduce his stake in Kotak Mahindra Bank to 26 percent and comply with a settlement agreement struck with the Reserve Bank of India (RBI). A total of 2.83 percent promoter stake was sold as part of the block deals at a price of Rs 1,240 a share. The markets cheered the move as the Kotak Mahindra stock ended up 7.5 percent at the end of trade on June 2.
“The Regents invest in select stocks in select markets with a very long term horizon,” said a source familiar with the stake sale process. The Regents of the University of California currently manages a portfolio of investments totalling roughly $120 billion, which includes retirement, endowment, and cash assets.
According to block deal data disclosed on the stock exchanges, the second highest buyer of shares was Oppenheimer Developing Markets Fund, part of the US based investment management company, the Invesco Oppenheimer Group. Other marquee investors include JP Morgan Securities, Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund, Canadian pension fund CPPIB, Singapore’s GIC, T Rowe Price, the Fidelity group and Aberdeen Asset Management. Kotak Securities, Goldman Sachs and Morgan Stanley were the merchant bankers who worked on the promoter share sale.
Execution of the promoter stake sale means that Kotak Mahindra Bank has raised more than Rs 14,000 crore in the last two weeks. Last week, the bank raised at least Rs 7,442.5 crore via a qualified institutional placement (QIP), which brought down Kotak’s stake to 28.93 percent. The largest subscribers to the QIP were Invesco Oppenheimer Developing Markets Fund, which was allotted 8.02 percent of the total issue size, Canadian pension fund CPPIB (7.12 percent) and ICICI Prudential Mutual Fund (6.3 percent)
On February 18, RBI had granted Kotak Mahindra Bank a six-month timeline to reduce promoter shareholding to 26 percent. At the end of March, the promoter stake in the bank stood at 29.92 percent. Earlier, the bank had dragged RBI to court over differences relating to the promoter dilution diktat, but later withdrew its petition after burying the hatchet with the regulator.
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