Warburg Pincus May Exit Kotak Mahindra Bank
Warburg Pincus maybe looking to exit 
Kotak Mahindra Bank Limited. As on June 2011, it owns 7.4% stake in Kotak Bank.
Warburg Pincus, which held 9.28% as on March 2011 in Kotak Bank through its entities Madison Holdings and Melany Holdings, sold 1.88% stake in April-June quarter for around Rs.650 Cr ($150 Mn).
Transaction Reference: Times Of India
Warburg Pincus first investment in banking sector was in 2004 in Kotak Bank, where it bought 2.75% stake for Rs.75 Cr at Rs.230 per share. In 2005, it bought additional 2% stake at Rs.385 a share. It then raised its stake more than 9% by buying additional stake in various tranches.
Warburg has been the investor in Kotak for last seven years. At Kotak Bank's current market price of Rs.480, Warburg's balance 7.4% stake is valued at around 2,600 Cr.
Kotak group's flagship arm Kotak Mahindra Finance was the first non-bank finance company to convert itself into a bank.
Last month, Warburg made a partial exit in Max India, by selling around 1.96% stake for Rs.90 Cr. Before the stake sale, Warburg Pincus held 14.64% stake in Max India through its entities Madison Holdings, Melany Holdings and Parkville Holdings.
Kotak Bank operates 230 branches over 718 ATMs and manages assets worth $11 Bn.
The current market cap of the bank is Rs.35,914 Cr. It posted total revenue of Rs.1423.93 Cr with net profit of Rs.248.70 Cr for FY2011.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 26/03/12 | Kotak Mahindra Bank - Warburg Pincus (Exit) | Private Equity | 274.17 | |
| 01/02/12 | Kotak Mahindra - Warburg Pincus (Part Exits) | Private Equity | Vontobel Funds Inc | 174.39 |
| 21/07/11 | Kotak Mahindra Bank - Warburg Pincus (Exit)) | Private Equity | - | |
| 30/04/11 | Kotak Mahindra Bank - Warburg Pincus (Part Exit) | Private Equity | 150.00 | |
| 30/06/10 | Kotak Mahindra Bank - Sumitomo | M&A | Sumitomo Mitsui Banking Corporation | 296.00 |
| 24/06/10 | Kotak Mahindra Bank - ING - Exit | M&A | 172.60 | |
| 30/11/04 | Kotak Mahindra - Warburg Pincus | Private Equity | Warburg Pincus International | 16.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| Warburg Pincus International | 30000 | BFSI Consumer Goods Energy Energy |
www.warburgpincus.com | Ajay CandadePrashant KumarAjay CandadeSachin ChopraPrashant KumarVishal MahadeviaNiten MalhanAnish SarafDalip PathakDebashish BhadraKshitij Bhatia |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Kotak Mahindra Bank Limited | Uday Suresh Kotak | 36-38A, Nariman Bhavan, 227, D, Nariman Point |
Yes Bank Limited Standard Chartered Bank State Bank of India HDFC Bank Limited |
www.kotak.com |
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