InvestorQ : Why has LIC increased its stake in Kotak Bank?
Rutuja Nigam made post

Why has LIC increased its stake in Kotak Bank?

9 months ago

LIC has increased its stake in Kotak Mahindra Bank by 0.73% during the second quarter ended Sep-20 as per the stock exchange data put out on ownership. Effectively, the LIC stake in Kotak Bank has gone up to 3.18% from 2.45% in the June quarter.

Apart from LIC, the other major public shareholders in the bank include SBI Mutual Fund holding 2.81%, Axis Mutual Fund holding 1.51%, Canada Pension Plan Investment Board holding 6.38%, among others.

According to the exchange filing, Uday Kotak and his family hold 26% stake in the bank. It may be recollected that in June 2020 Uday Kotak had sold 2.8% in the form of block deals to a clutch of domestic and international investors for a consideration of Rs.6,900 crores.

This is part of the normal treasury buying and selling by LIC, which is one of the largest domestic institutional investors in the country. It routinely uses corrections in the market to increase its stake in blue chip companies in the equity market.