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By Malvika Gurung
Investing.com — Shares of the private lender Kotak Mahindra Bank (NS:) declined 3.2% to Rs 1,718.75 apiece at 3:20 pm on Thursday, continuing its previous day’s fall.
The stock slide came after reports of the company’s stakeholder Canada Pension Plan Investment Board (CPPIB) expecting to sell a partial stake through a bulk deal on March 24 came forth.
Kotak Mahindra Bank was the worst performer on the benchmark indices and , and on the sectoral index .
As per news reports, Canada Pension Plan, which holds a 6.37% stake in the private lender, and is likely to sell a 1.41% to 2.02% stake in the company on Thursday, and is expected to raise nearly Rs 7,079 crore through the sale.
The deal size is for 28 million equity shares of Kotak Mahindra, along with an additional 12 million shares, upscaling the total deal size to 40 million shares. Moreover, the sale is likely to be conducted at a discount of 0-5% from the current market price.
The pension fund would offload Kotak Mahindra’s shares at a price range of Rs 1,681.26-Rs 1,769.75 apiece, with an estimated total value of the deal up to Rs 4,955 crore.
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