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Uday Kotak on Monday sold 1.8 crore shares in Kotak Mahindra Bank (Kotak Bank) in the open market through the bulk deal window of the BSE at an average price of ₹937.35 a share. The deal size was ₹1,687.23 crore. However, identity of the buyers was not immediately known.
The sale, undertaken to comply with the Reserve Bank of India’s directive, has resulted in Uday Kotak’s stake in Kotak Bank falling to below 30 per cent.
In February, the RBI had directed Kotak Bank to reduce promoter holding to 30 per cent by June 2017 and to 20 per cent by December 2018. It is also required to bring down the promoters’ holding to 15 per cent by March 2020 in line with the 2013 guidelines for new bank licences released in 2014.
Share-sale via QIPFollowing the directive, on March 8, Uday Kotak sold 2.76 crore shares in Kotak Mahindra Bank in two separate block deals to Canadian pension fund managers Caisse de Depot et Placement du Quebec and Canada Pension Plan Investment Board (CPPIB) at an average price of ₹817 a share.
Also, earlier this month Kotak Bank had sold 6.2 crore shares at ₹936 a share to institutional investors through a qualified institutional placement that had helped the Kotak family to further reduce their stake to 31.03 per cent.
Kotak Bank had raised ₹5,803.20 crore through the QIP issue. The funds raised could be used to pursue consolidation opportunities in the banking and financial services space, capitalise on opportunities in acquisition and stressed assets resolution, including joining a bad bank, mopping up additional avenue for organic growth such as digital expansion, more international lending and capital infusion into subsidiaries, it had then said.
Kotak Bank reported a consolidated net profit of ₹1,404 crore for the January-March quarter which is 33 per cent higher than the ₹1,055 crore it reported in the year-ago period. Net interest income increased 17 per cent to ₹2,890 crore. Standalone net profit rose 40 per cent in the March quarter to ₹976 crore (₹696 crore).
For FY17, the consolidated net profit surged 43 per cent to ₹4,940 crore (₹3,459 crore) while standalone net profit grew 63 per cent to ₹3,411.5 crore (₹2,090 crore).
Gross non-performing assets (GNPAs) edged up to 2.59 per cent at March-end 2017 against 2.36 per cent in March 2016.
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