Kotak shares rose as much as 8.03 percent to 1,275 rupees, their highest since Sept. 4. The stock posted its biggest intraday gain since Nov. 2014. Photo: Mint
Kotak Mahindra Bank shares trimmed gains after the bank denied that Warren Buffett’s Berkshire Hathaway is planning to buy a 10% stake in the bank. Earlier in the day, Kotak Bank shares posted their sharpest surge in nearly nine years on Friday following a CNBCTV18 report that billionaire investor Warren Buffett’s Berkshire Hathaway Inc is planning to pick up a 10 percent stake in the bank. At 2.58pm, Kotak Bank shares traded 6.44% up at Rs 1256.30 per share.
“We confirm that we have nothing to report to the exchanges on the said item. Kotak Mahindra is unaware of any plans by Berkshire Hathaway buying stake in the bank as stated in the story”, the bank said in a BSE filing.
Uday Kotak, the billionaire head of Kotak Mahindra Bank, has been asked by the country’s central bank to lower his holding in the bank to 20 percent by the end of this year, and to 15 percent by March 31, 2020.
In August, the Reserve Bank of India said the CEO’s plan to reduce his stake by issuing non-convertible perpetual non-cumulative preference shares does not meet their promoter holding dilution requirement.
Uday Kotak directly held a 29.73 percent stake in the lender as of Sept. 30, 2018, according to data on the Bombay Stock Exchange.
Kotak Bank shares rose as much as 14 percent to 1,345.950 rupees, their highest since Sept. 3. This was the stock’s sharpest intraday gain since February 2010. The stock was the biggest contributor to gains on the Nifty, which was up 0.17 percent as of 0629 GMT.
Kotak Mahindra Bank and Berkshire Hathaway were not immediately available to comment on the matter.