The Regents of the University of California, a US-based endowment fund, have emerged. They happen to be the top buyers in the 6900 Crore Indian Rupees Block Deal. Uday Kotak, Chairman and MD of Kotak Mahindra Bank had launched this deal.Therefore, he wishes to reduce his stake in the bank to 26%. Wishing to comply with a settlement agreement struck with the Reserve Bank of India (RBI).
Firstly, 2.83 % promoter shares were sold to in the block deal at a price of Rs 1,240 a share. Secondly, the markets appreciated the move. As Kotak Mahindra stock ended up 7.5 percent at the end of trade on 2nd June, 2020. “The Regents invest in select stocks. In select markets with a very long term horizon.” Said a source familiar with the stake sale process. However, the Regents of the University of California currently manages a portfolio of investments. Totaling roughly $120 billion, which includes retirement, endowment, and cash assets.
Investments and the Stock Exchange
According to block deal data disclosed on the stock exchanges. The second highest buyer of shares was Oppenheimer Developing Markets Fund. Moreover, it is part of the US-based investment management company, the INVESCO Oppenheimer Group. Other marquee investors include JP Morgan Securities, Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund, Canadian pension fund CPPIB, Singapore’s GIC, T Rowe Price, the Fidelity group and Aberdeen Asset Management. Promoter share sales were worked by Kotak Securities, Goldman Sachs and Morgan Stanley .
Conclusively, Kotak Mahindra Bank had risen more than Rs 14,000 Crore in the last two weeks. Last week, the bank raised at least 7,442 Crores via a qualified institutional placement (QIP), which brought down Kotak’s stake to 28.93 percent. The largest subscribers to the QIP were INVESCO Oppenheimer Developing Markets Fund, which was allotted 8.02 percent of the total issue size, Canadian pension fund CPPIB (7.12 percent) and ICICI Prudential Mutual Fund (6.3 percent)
