Warburg Pincus sells Kotak Mahindra stake for $272m
Warburg Pincus has fully exited India’s Kotak Mahindra Bank by selling the remaining 3.6% stake it held in the institution for INR14 billion ($272 million) on the public markets.
The US private equity firm, which first invested in Kotak in November 2004, sold 26.5 million shares in a block trade on the Bombay Stock Exchange (BSE) on Monday. The shares sold at INR530 apiece to two funds managed by UK-based investor Geneses, Geneses Emerging Markets Investments and Geneses Group Trust. The sale was run by Kotak Securities, sources told The Times of India.
The Kotak shares had been held within Warburg's Madison Holding and Melany Holding vehicles.
Warburg Pincus already reduced its holding in Kotak last month, by raising about $170 million, again through a public market sell down. It sold 17.5 million shares at INR490 apiece, apparently to Vontobel Funds, Blackrock, Deutsche Securities, ICICI Prudential AMC and SBI Life. Vontobel took the largest portion, picking up close to 12 million shares, followed by Deutsche Securities with 2.6 million shares.
An exit at this time is seen as an attempt to capitalize on a recent revival in India's stock markets. Having dropped more than 25% during 2011, the BSE India Sensex Index jumped by more than 10% in January, the first monthly increase in three months, and the strongest single-month performance since September 2010.
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