Kotak Mahindra Bank to raise Rs 5,662 cr via QIP

Mumbai, May 12 (IANS) Private sector lender Kotak Mahindra Bank, which is planning to raise about Rs 5,662 crore by selling 6.2 crore shares through Qualified Institutional Placement (QIP), has set the floor price at Rs 913.24 per equity share in respect of the issue, it said in a filing on Thursday.

The share sale is part of the stake dilution exercise by its promoter Uday Kotak, the Vice Chairman of the bank, as per the Reserve Bank of India (RBI)'s regulatory directives.

The RBI had asked the promoters of the bank to bring down their holding in a phased manner -- 30 per cent by June 30, 2017, 20 per cent by December 31, 2018 and 15 per cent by March 31, 2020.

As of March 31, 2017, promoters held 32.08 per cent in the bank of which Uday Kotak himself held 31.77 per cent. The public shareholding in the bank was 67.92 per cent.

In a regulatory filing, the bank said the security issuance committee of the board of directors of the bank at its meeting on Thursday approved the opening of issue on May 11, 2017 and took on record the floor price of the issue at Rs 913.24 per equity share.

At this price, 6.2 crore shares are worth Rs 5,662 crore.

The proposed capital dilution works out to 3.37 per cent of the current equity base.

The bank's board had earlier approved a proposal to raise capital through an equity offer by issuing up to 6.2 crore shares of Rs 5 each.

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