A unit of ING Groep NV sold its entire holding of Kotak Mahindra Bank
Ltd., people familiar with the matter said, after shares in the lender surged more than 120% since they were acquired.
ING Mauritius Investments I Ltd. offloaded 58.7mn shares in Kotak Mahindra for Rs1,225 each, raising Rs7,190cr ($1bn), people familiar with the matter said, asking not to be identified as the details aren’t public.
The unit had offered to sell up to 23mn shares of the lender between Rs1,225 and Rs1,250 apiece but decided to upsize the deal.
ING Group had been one of the largest public shareholders in Kotak Mahindra Bank after merging its Indian banking unit, ING Vysya Bank, with the Mumbai-based lender in November 2014. It initially held a 6.5% stake in the merged entity.
Amsterdam-based ING has been trying to turn the page on a year marred by a string of bad news, including a record fine to settle charges related to failures in anti-money-laundering checks.
Kotak Mahindra Bank shares fell 4% to close at Rs1,237.90 in Mumbai on Friday.
Morgan Stanley India Co. and Kotak Securities were brokers for the offer. Representatives for Morgan Stanley and Kotak Mahindra Bank did not immediately respond to an email seeking comment.