KFin Tech shares tank over 6% amid bulk deal buzz by Kotak Mahindra Bank

Shares of KFin Technologies Ltd slipped during the trading session on Tuesday amid the heavy volumes followed by the reports of block deals in the financial services provider. Media reports suggested that Kotak Mahindra Bank was looking to sell stake in the company.

Kotak Mahindra Bank was looking to sell about 34.7 lakh equity shares of KFin Technologies amounting to Rs 218 crore. The private lender was likely to sell a 2 per cent stake in KFin Technologies through block deals, said the sources.

According to data from exchanges, the deal was apparently executed as signaled by the heavy trading volumes on the exchange. On BSE, a total of 39.41 lakh shares of KFin Tech, amounting to Rs 236.69 crore were traded as of 10.55 am. A total of 16.23 lakh shares worth Rs 97.50 crore exchanged hands on NSE at the same time, it said.

Shares of KFin Technologies tanked about 6.43 per cent to Rs 587.05 on Tuesday, commanding a total market capitalization of more than 10,000 crore. The scrip had settled at Rs 682.25 on Monday, falling about 3.62 per cent in the previous trading session.

Kotak Mahindra Bank held 9.8 per cent stake in KFin Technologies as of the shareholding pattern December 2023. Kotak Mahindra Bank, is now reported to own 7.7 per cent in KFin Tech, had invested Rs 310 crore in KFin Technologies in September 2021. In December, promoter General Atlantic offloaded around 10 per cent equity in the company for Rs 851 crore.