CPPIB ups stake in India's Kotak Mahindra Bank

In an open market transaction, CPPIB bought 18.1 million shares of Kotak from Sumitomo for INR636.25 apiece. The deal raises CPPIB's stake in the bank to 4.9%, just below the 5% ownership limit in Indian banks for foreign financial investors.

Separate from the CPPIB transaction, Sumitomo sold another block of shares for INR9.2 billion. The two deals will reduce its overall holding to 1.8%. It first invested $294 million in the bank in 2010.

This is CPPIB's third investment in Kotak Mahindra Bank. The LP paid INR7.8 million for a 1.4% stake in Kotak in 2013, later adding an additional 3.3% stake held by the company's promoters for INR22 billion. Its holding dropped to 3.9% after Kotak Mahindra's 2015 merger with ING Vysya Bank diluted the stock.

CPPIB has an active presence in India through direct investments, co-investments, and LP commitments in various funds; it opened its first India office in October. It has made a INR20 billion commitment to L&T Infrastructure Development Projects, formed a $500 million realty debt fund with Piramal Enterprises, and agreed to put $200 million into a oint venture with the Shapoorji Pallonji Group.

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• Topics
• South Asia
• Financials
• PIPEs
• Open market
• LPs
• India
• Canada Pension Plan Investment Board (CPPIB)
• Sumitomo Mitsui