Heard on the street: Warburg Pincus may offload 3.38% in Kotak Mahindra

The market is abuzz with speculation that private equity giant Warburg Pincus is likely to sell about 2.5 crore shares of Kotak Mahindra Bank, representing 3.38% of the lender's equity through a block deal soon. Market sources said the shares will be sold for 540 apiece.

Kotak shares closed at 547.90 on Wednesday on BSE. A Warburg Pincus spokesperson declined to comment. A Kotak spokesperson said, "We cannot comment on Warburg Pincus selling their investments." Warburg, which held a 5.96% stake in Kotak on December 31, 2011, sold 2.37% on February 1 at 490 per share, according to exchange data. Kotak Mahindra shares have gained almost 12% since then.

Contributed by Manisha Singhal