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.


(This article was published on April 12, 2013)
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