ING Group is looking to sell part of its stake in Kotak Mahindra Bank Ltd. for more than Rs 2,800 crore, according to two bankers involved in the transaction, as the Dutch major continues to reduce its holding in the private lender.
The group, with 3.06 percent stake, aims to sell 1.21 percent (2.3 crore shares) via a block deal, the bankers said on the condition of anonymity as the information is not public. The offer price would range between Rs 1,225 and Rs 1,250 apiece, up to 5 percent discount to Thursday's closing price, according to the term sheet reviewed by BloombergQuint.
Also Read: BQEdge | Kotak Mahindra Bank May Be On The Verge Of A Breakout
At the current prices, that could fetch Rs 2,800 crore factoring in the discount. ING Group also has an option to increase the offer size depending on investor response, one of the people quoted earlier said. The group has approached institutional investors for gauging interest, the person said.
A spokesperson for ING Group declined to comment on BloombergQuint's emailed queries.
ING Group has been one of the large public shareholders in Kotak Mahindra Bank after merging its Indian banking unit, ING Vysya Bank, with the lender in November 2014. It held 6.5 percent stake in the merged entity and has since offloaded shares.
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