Synopsis:
Goldman Sachs, Abu Dhabi Investment Authority, BNP Paribas, Bandhan Bank, BoFa Securities, and many more fund houses took part in the 6,256 crore block trade that was triggered by the selling by SMBC.
The shares of this leading private bank saw great interest from international funds, highlighting their confidence in India’s third-largest private bank in terms of market capitalization.
With a market capitalization of Rs 3,90,944 crore, the shares of Kotak Mahindra Bank Ltd are currently trading at Rs 1,966 per share, representing a decline of 15 percent from its 52-week high of Rs 2,301.55 per share. Over the past five years, the stock has delivered a positive return of 48 percent.
About the deal
On Wednesday, a significant block trade was recorded where Japan’s Sumitomo Mitsui Banking Corporation (SMBC) sold its entire 1.65 percent stake worth Rs 6,256 crore in Kotak Bank. The exchange recorded the selling of over 3.2 crore shares at an average price of Rs 1,940.8 per share.
Goldman Sachs purchased shares in the company through both of its Europe SE division, acquiring 74,000 shares, and its Mauritius division, picking up 93,000 shares.
Other global players also joined the race, including the Abu Dhabi Investment Authority with 133,000 shares, Amundi Funds – Emerging Markets Equity Focus with 67,000 shares, and BlackRock Global Funds – India Fund, which purchased a substantial 329,000 shares.
BofA Securities Europe SA added 230,000 shares to the mix, while Copthall Mauritius Investment and Citigroup Global Markets Mauritius each took 93,000 shares. BNP Paribas Financial Markets went big with 578,000 shares, and Malaysia Sdn Bhd rounded it out with 106,000 shares.
On the domestic front, domestic investors like Aditya Birla Sun Life MF (212,000 shares), Bandhan MF (95,000 shares), Bajaj Allianz Life Insurance (292,000 shares), and Aditya Birla Sun Life Banking and Financial Services Fund (191,000 shares) also jumped in, showcasing a robust interest from both foreign and Indian institutional investors.
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Financial Highlights
The company reported a revenue of Rs 17,248 crore in Q1 FY26, up by 9 percent from its Q1 FY25 revenue of Rs 15,837 crore. Additionally, revenue increased by 3 percent from Rs 16,772 crore in its previous quarter.
Regarding its profitability, the company reported a net profit of Rs 4,472 crore in Q1 FY26, down by 40 percent from its Q1 FY25 net profit of Rs 7,448 crore. Additionally, it declined by 9 percent from Rs 4,933 crore in its previous quarter.
The stock delivered an ROE and ROCE of 15.37 percent and 8.17 percent respectively, and is currently trading at a high P/E of 20.42x as compared to its industry average of 12.40x.
Written by Satyajeet Mukherjee
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