Kotak Mahindra Bank doesn’t want to list any of its subsidiaries and wants the bank’s shares to reflect the integrated value of the Kotak Group, according to Whole Time Director KVS Manian.

“We have followed a philosophy that we don’t want to list our subsidiaries, we want to see Kotak Bank stock as the integrated one single play across financial services,” Manian told businessline.

Asked if he thinks the bank’s stock is then adequately priced and understands the thinking of the Group, Manian said that markets determine stock prices in their own ways and eventually the stock will find its price.

“From a business strategy point of view, we are doing the right things. Over a period of time the markets will take care of valuation,” he said.

Shares of Kotak Bank ended 1.7 per cent lower on Wednesday at ₹1,724.35 on the NSE. The stock has seen steady correction since November 2022, which has kept valuation below the 52-week high of ₹1,997.55.

Strong upside

However, analysts predict strong upside in the stock in 2023, with an average price target of ₹2,225. This includes a wide range of estimates with ICICI Direct and HDFC Securities suggesting a price target of around ₹2,170 to Jefferies and ICICI Securities pegging it as high as ₹2,400, following the recent acquisition of microfinance company Sonata Finance.

Manian added that the bank is not planning to raise any capital in the near term as none of the key subsidiaries require any growth capital.

“We don’t need more capital in most of our key subsidiaries for their growth. They are adequately capitalized. The bank is well capitalized,” he said.

Kotak Securities, Kotak Mahindra General Insurance, Kotak Mahindra Capital, Kotak Mahindra Prime, Kotak Mahindra Life Insurance, Kotak Mahindra Asset Management, Kotak Investment Advisors and BSS Microfinance are the domestic subsidiaries of the private sector lender in addition to the international subsidiaries under Kotak International Business.

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