Warburg Pincus Exits Kotak by Selling Its $272 Million Stake

Kotak Mahindra Bank Ltd. Managing Director Uday Kotak
Uday Kotak, managing director of Kotak Mahindra Bank Ltd. Photographer: Dhiraj Singh/Bloomberg

Warburg Pincus LLC exited a more than seven-year-old investment in Kotak Mahindra Bank Ltd.

The U.S. private equity firm, which first invested in Kotak in November 2004, sold 26.5 million shares in a block trade today, said Malini Roy, an external spokeswoman for Warburg. Roy declined to provide details of the sale. The shares represent about 3.6 percent of the bank, data compiled by Bloomberg show.

The holding is valued at $272 million, based on Kotak’s March 23 closing price. Kotak, founded by billionaire Uday Kotak, gained 26 percent this year in Mumbai trading, in line with gains for the 14-lender BSE India Bankex Index. The stock rose 1.1 percent to 531.15 rupees at the 3:30 p.m. close in Mumbai.

Warburg sold a 3.3 percent stake in Kotak on Feb. 1, according to an exchange filing. Last month, Citigroup Inc. exited a seven-year investment in Housing Development Finance Corp. through a $1.9 billion stake sale.

Warburg Pincus affiliates have invested $3 billion in Indian companies in sectors including manufacturing, infrastructure and technology, Roy said in an e-mail.

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