Kotak Bank Share Price Inches Higher After ₹6,256 Crore Block Deal: Stock Market Today

Market Performance

Kotak Mahindra Bank shares started the trading session on a positive note on September 10. The stock edged up nearly 1% in early trade, supported by a large block deal that drew strong attention. By 9:25 a.m., the counter was seen at ₹1,978 on NSE, marking a 0.9% gain.

Block Deal Activity

The buzz in Kotak Bank was driven by a significant bulk trade. Roughly 3.22 crore shares, valued at about ₹6,256 crore, were exchanged in the block deal window.

• Trade price: ₹1,941 per share
• Equity involved: Around 1.62% of Kotak Bank’s total outstanding shares
• Execution: Spread across 31 separate blocks

This was one of the largest trades in recent times for a private sector lender, keeping the stock in focus among market participants.

Who Sold the Stake?

While the exact counterparties of the deal were not immediately disclosed, reports pointed towards Sumitomo Mitsui as the likely seller. The Japanese bank is believed to have fully exited its 1.65% holding in Kotak Mahindra Bank through this transaction.

The move comes at a time when Sumitomo Mitsui is channeling funds into Yes Bank, where it has been actively expanding its footprint.

Sumitomo Mitsui’s Yes Bank Investment Journey

Sumitomo Mitsui has been strengthening its presence in India’s financial space through its stake in Yes Bank.

• In May 2024, it finalized a deal worth nearly ₹14,000 crore to acquire a 20% stake in Yes Bank.
• Sumitomo acquired 13.19% of shares from State Bank of India, while the remaining 6.81% was collectively bought from Bandhan, Axis, Federal, HDFC, ICICI, IDFC First, and Kotak Mahindra banks.
• In August 2024, the RBI gave its go-ahead for Sumitomo to raise its holding up to 24.99%.
• The CCI gave its approval for the deal earlier this month.
• Importantly, the RBI clarified that Sumitomo Mitsui will not be categorized as a “promoter” of Yes Bank, avoiding additional compliance requirements.

This makes the deal one of the most prominent cross-border acquisitions in India’s banking sector.

Key Highlights

• Kotak Bank share price rose 0.9% to ₹1,978 in morning trade on September 10.
• A large block deal worth ₹6,256 crore was executed at ₹1,941 per share.
• The trade covered 3.22 crore shares, or about 1.62% of Kotak Bank’s total equity.
• Reports suggest Sumitomo Mitsui sold its entire 1.65% stake in Kotak Bank.
• The Japanese lender is reallocating capital towards its ₹14,000 crore investment in Yes Bank.
• Approvals from both RBI and CCI have already paved the way for this strategic stake purchase.