Kotak Mahindra Bank will make a preferential allotment of 2 crore equity shares to Singapore-based Heliconia for Rs 1,296 crore.

The proposed investment will be at a price of Rs 648 a share.

The preferential equity issue is subject to shareholder and other necessary regulatory approvals, the bank said in a statement.

Post-allotment, Heliconia, an affiliate of the Government of Singapore Investment Corporation Pte Ltd, will have approximately 2.6 per cent shareholding in the private sector bank.

The preferential issue will augment the Tier-I capital of the bank for pursuing growth opportunities. It will also be a step towards dilution of promoter stake in the bank, the statement said.

As of March-end 2013, the bank’s promoter group, led by Uday Kotak, Executive Vice-Chairman and Managing Director, had 44.96 per cent stake against 45.11 per cent as of December-end 2012.

On Friday, Kotak Mahindra Bank ended 1.44 per cent higher at Rs 637.75 a share on the Bombay Stock Exchange.

beena.parmar@thehindu.co.in

(This article was published on April 12, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.