Kotak Mahindra shares trade choppy amid block deal news: check details
Kotak Mahindra share news: Canada Pension Fund plans to sell 1.66% stake in Kotak Mahindra bank via block deals today. The shares will be sold at a price range of ₹1,792- ₹1,886 per share.
PremiumKotak Mahindra shares traded choppy on Friday following news that the government-run Canada Pension Fund would probably sell a portion of its stake in the private lender bank through block deals today. Kotak Mahindra shares opened at ₹1863.55 apiece on BSE.
The Canadian Pension Fund will sell a 1.66% stake in Kotak Mahindra Bank, sources told CNBC TV-18, according to media reports. As of March 30, the Canada Pension Fund owned 4.34% of Kotak Mahindra Bank. As per reports, the 1.66% share held by the fund is worth $754 million.
People familiar with the transaction further stated that the fund is selling the shares at a price range of ₹1,792- ₹1,886 per share, which equates to up to a 5% discount from the current market price (CMP), according to media reports.
Following the transaction, Canadian Pension Fund Investments' stake in the bank will decrease from 4.34% at the end of March to 2.68%.
Kotak Mahindra Bank shares ended at ₹1,886.35 apiece , down 2.68% on BSE on Thursday.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the private bank counter is under pressure this week as it's been down more than 2.5%. Next key support is at 1830 - 1800 which is a 200sma and bullish gap.
“As of now we don't see a performing signs form this heavyweight hence one should ideally avoid and wait for some base or reversal signs to re-enter," said Bhosale.
Ruchit Jain, Lead Research Analyst at 5paisa, said that the stock has seen higher volatility recently but it has good support in the range of 1850-1800. So he believes downside could be limited from current levels and prices could see some consolidation.
On the strength of rising core income and rising non-interest revenue, Kotak Mahindra Bank's Q4FY23 net profit exceeded street's expectations.
The private bank's net profit for the three months ending in March was ₹3,495 crore, up 26.3% from the prior-year period. A profit of ₹2,898 crore was predicted by analysts surveyed by Bloomberg.
The bank's net interest income, referred to as core revenue, increased 35% from the prior year to ₹6,103 crore.
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