Insurance major Life Insurance Corporation of India (LIC) has raised its stake in Kotak Mahindra Bank by 0.73 per cent during the September quarter, which caused the private lender's shares to rise over 3 per cent on Bombay Stock Exchange (BSE).
As per the latest shareholding pattern available on the BSE, LIC has increased its stake in the bank to 3.18 per cent from 2.45 per cent earlier, by buying additional 14,523,574 shares in the company during the July-September quarter of the current fiscal. LIC now holds 6,29,92,740 shares as against 4,84,69,166 in June quarter.
Meanwhile, SBI Mutual Fund (2.81 per cent), Axis Mutual Fund (1.51 per cent), Canada Pension Plan Investment Board (6.38 per cent), Europacific Growth Fund (4.98 per cent), Oppenheimer Developing Markets Fund (3.34 per cent), were among other public shareholders.
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Boosted by the development, Kotak Mahindra Bank share price gained as much as 3.25 per cent intra-day to Rs 1,380 after opening higher at Rs 1,350 against the previous closing price of Rs 1,336.55 on the BSE.
On a similar note, shares of Kotak Mahindra Bank ended at Rs 1,374.10, up 2.81 per cent, on the National Stock Exchange (NSE). During the day's trade, the stock hit an intra-day high of Rs 1,380 after opening higher at 1,350.
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Promoters, Uday Kotak and his family currently owns 26 per cent stake in the bank. Earlier in June this year, Uday Kotak had sold 2.8 per cent stake in the bank through block deals for Rs 6,900 crore to comply with the Reserve Bank of India's (RBI) norms. The RBI's norms stipulate 26 per cent (promoter) holding in the bank.
The board of Kotak Mahindra Bank is scheduled to meet on October 26 to release financial results for the quarter and half year ended September 30, 2020.
By Chitranjan Kumar