CPP to sell 1.66% in Kotak Bank; stock dips as shorts soar

Canada’s CPP Investments will sell a 1.66% stake in Kotak Mahindra Bank on the stock exchanges for ₹5,914-6,225 crore on Friday, a person aware of the development said. The Canadian pension fund will sell 33 million shares at the stock’s Thursday closing price of 1,886.5, or a discount of as much as 5%, the person cited above said on condition of anonymity, adding Kotak Securities will be the book-builder for the transaction. CPP Investments first acquired a stake in Kotak Mahindra Bank in mid-2013 and has increased its stake over the years. “It’s obvious somebody might have prior information of the deal and shorted the stock, as such large deals normally happen at a discount to the market price,” a fund manager requesting anonymity said.