Capital One picks up stake in Kotak Bank

Capital Research, an investment wing of the Capital One group, bought 5,70,495 shares of Kotak Mahindra Bank in a block deal at a price of Rs 359.98 per equity share.

The deal was reported on the Bombay Stock Exchange on August 16. On that day, the bank's share price touched a high of Rs 360 and closed at Rs 353 after dipping to a low of Rs 350.

Today, the Kotak Bank scrip closed at Rs 351.45 after an intra-day high of Rs 358.95 and a low of Rs 350.

As on June 30, Indian promoters held 60.95 per cent in Kotak Bank, mutual funds and UTI 3.95 per cent, banks, financial institutions and insurance companies 0.03 per cent, foreign institutional investors 15.91 per cent, private corporate bodies 1.38 per cent, Indian public 16.14 per cent and non-resident Indians and overseas corporate bodies 1.60 while a few overseas funds held the rest. Capital One o has interests in entering the fast-growing retail financial sector in India by launching credit cards.

It was understood to be doing extensive market research in India and has also appointed a country manager to look into various aspects of launching financial products in the country. The group which operates through five arms has an exposure of between $ 1.5 billion and $ 2 billion in the Indian market.