Share price of Bank of India, State Bank of India, Union Bank of India and Kotak Mahindra Bank rose in morning trade today following the decision of their entire stake sale in credit information bureau Equifax Credit Information Services (ECIS).
The lenders executed a share purchase agreement for sale of their entire stakeholding in ECIS.
Private sector lender Kotak Mahindra Bank sold its entire 5.56% stake, followed by Bank of India that disinvested 3.5% and Union Bank of India sold 4.17% stake. On a similar note, SBI approved divestment of entire equity stake of 7.41%.
State-owned BoB sold 1.35 crore shares of the face value of Rs 10 for Rs 67.43 per unit. Kotak Mahindra Bank sold 75,00,000 equity shares at Rs 67.43 per unit. State Bank of India divested 1 crore equity shares of Rs 10 each at Rs 67.43 per equity share.
Following disinvestment updates by lenders, Kotak Mahindra Bank share price rose 1.5%, followed by 0.80% gain in State Bank of India share price. Bank of India shares climbed 0.72% and Union Bank of India stock price rose 0.38%, respectively.
The transaction of exiting ECIS is subject to regulatory approvals and will be completed by Q4FY20, the banks added in their filings.