Kotak Mahindra Bank Block Deal: SMBC to Offload 1.65% Stake Worth ₹6,166 Crore

Sumitomo Mitsui Banking Corporation (SMBC), the Japanese banking giant, is set to divest a 1.65% stake in Kotak Mahindra Bank through a block deal valued at approximately ₹6,166 crore, according to a news report by CNBC-TV18.

Kotak Mahindra Bank Block Deal

The shares are being offered at a floor price of ₹1,880 each, around 4.1% lower than the private lender’s last closing price on the National Stock Exchange (NSE).

As per report, SMBC aims to use the proceeds from this sale to fund its planned investment in Yes Bank. This move follows recent regulatory approvals that have paved the way for SMBC’s entry into Yes Bank. Earlier, the Reserve Bank of India (RBI) granted approval for SMBC to acquire up to 24.99% stake in the private sector lender. Notably, the RBI clarified that SMBC would not be classified as a “promoter” post-transaction, thereby exempting it from promoter-specific regulatory requirements.

The Competition Commission of India (CCI) also gave the green light to SMBC’s proposal earlier this month.

SMBC to Acquire Stake in Yes Bank

In May, SMBC announced a landmark deal to acquire a 20% stake in Yes Bank for ₹13,482 crore, marking the largest-ever cross-border investment in the Indian banking sector.

As part of the 20% stake sale plan in Yes Bank, State Bank of India (SBI) will divest a 13.19% stake. The remaining 6.81% will come from a consortium of seven other lenders: Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank.

Also Read: Voltamp Transformers Block Deal: Promoter Kunjal Patel to Divest 7% Stake

About SMBC

SMBC, a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG), is Japan’s second-largest banking conglomerate with assets totaling $2 trillion as of December 2024.

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