KFin Technologies Ltd witnessed a significant dip in its shares during Tuesday’s trading session, fueled by reports of block deals and stake sale buzz involving Kotak Mahindra Bank. The private lender was reportedly considering selling a 2% stake in KFin Technologies, amounting to approximately Rs 218 crore. The block deal news led to heavy trading volumes, with a notable impact on KFin Tech’s stock value.
Kotak Mahindra Bank’s Stake Sale Plans
Media reports indicated that Kotak Mahindra Bank was exploring the sale of around 34.7 lakh equity shares of KFin Technologies, valued at Rs 218 crore. The potential block deal aimed at reducing Kotak Mahindra Bank’s stake in KFin Technologies triggered a market response, evident in the high trading volumes during the session.
Trading Activity and Share Performance
As per exchange data, the deal seemed to be executed, with a total of 39.41 lakh shares of KFin Tech traded on BSE, amounting to Rs 236.69 crore. Concurrently, 16.23 lakh shares worth Rs 97.50 crore changed hands on NSE as of 10.55 am. The shares of KFin Technologies experienced a notable decline of 6.43%, reaching Rs 587.05 on Tuesday. The total market capitalization of the company surpassed 10,000 crores.
Kotak Mahindra Bank’s Holding in KFin Tech
As of December 2023’s shareholding pattern, Kotak Mahindra Bank held a 9.8% stake in KFin Technologies. However, reports suggest that the bank’s stake has now reduced to 7.7% due to the proposed stake sale. Kotak Mahindra Bank had initially invested Rs 310 crore in KFin Technologies in September 2021. In a separate transaction in December, General Atlantic, a promoter, offloaded around 10% equity in KFin Technologies for Rs 851 crore.
