A block deal worth ₹6,256 crore took place in Kotak Mahindra Bank shares before the market opened on Tuesday. In this, approximately 3.22 crore shares were sold at an average price of ₹1,941 per share. It is probable that Japan's SMBC sold its 1.65% stake through this deal. The shares rose 1% in early trading.
Kotak Mahindra Bank shares: A large block deal occurred in Kotak Mahindra Bank before the market opened on September 10, involving the transaction of 3.22 crore shares for ₹6,256 crore at ₹1,941 per share. It is being speculated that Sumitomo Mitsui Banking Corporation (SMBC) of Japan is likely to have sold its 1.65% stake through this deal. SMBC held the same number of shares until the June quarter. Following the block deal, Kotak Mahindra Bank's stock climbed 1% in early trading to ₹1,979. Meanwhile, SMBC is focusing its attention in India on Yes Bank, where it is preparing to acquire a significant stake.
Deal Executed Before Trading Hours
This deal was completed before the market opened. Due to such a large transaction, Kotak Mahindra Bank's stock opened with an uptick in early trading. In the morning session, the stock gained more than one percent, and investor sentiment remained positive.
Who Sold the Shares
Information regarding which investor sold shares and who bought them in the block deal was not immediately available. However, market discussions suggest that Sumitomo Mitsui Banking Corporation of Japan, or SMBC, was the one that sold its stake.
SMBC's Stake
As of the end of the June quarter, SMBC held approximately 3.2 crore shares of Kotak Mahindra Bank. This accounts for about 1.65 percent of the company's stake. It is being speculated that these very shares were sold through the block deal. The floor price for this deal was set at ₹1,880 per share. This floor price was approximately a 4.1 percent discount to the stock's closing price on Tuesday. Based on this, the value of the deal amounts to approximately ₹6,166 crore.
SMBC's New Focus in India
SMBC is restructuring its investments in the Indian banking sector. Recently, it has planned to acquire a stake in Yes Bank. Last month, the company received approval from the Reserve Bank of India to acquire up to a 25 percent stake in Yes Bank. This deal will now depend on approvals from the Competition Commission of India and other regulatory bodies.
Major Investment in Yes Bank
In May 2025, SMBC announced its intention to acquire a 20 percent stake in Yes Bank. This deal will be executed through a secondary share sale, for which the company will spend approximately ₹13,483 crore. This stake will be purchased from the consortium led by the State Bank of India, which invested to rescue Yes Bank from its crisis in 2020. If this deal is completed, SMBC will become the largest shareholder of Yes Bank.
Kotak's Performance in the Stock Market
Around 9:30 AM today, Kotak Mahindra Bank shares were trading at ₹1,979.60 on the NSE. This price reflects a one percent increase. Year-to-date in 2025, this stock has delivered approximately an 11 percent return. This has maintained investor confidence in the bank's shares.
Impact on the Market
This substantial deal clearly indicates that foreign investors are changing their strategies regarding the Indian banking sector. While SMBC has reduced its stake in Kotak Mahindra Bank, it is simultaneously preparing to make a significant investment in Yes Bank.
