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Kotak Mahindra Bank has begun its fund-raising exercise and has started to invite bids for a qualified institutional placement (QIP).
With a floor price of ₹1,147.75 apiece and a discount of 5 per cent, the exercise could help the private sector lender raise as much as ₹7,100 crore in capital.
The private sector lender plans to issue of 6.5 crore equity shares of ₹5 each
“The board has at its meeting held on May 26...passed resolutions for.... approving the opening of the issue today, approving and adopting the preliminary placement document ..in connection with the issue; and approving the floor price for the issue, based on the pricing formula as prescribed under the SEBI ICDR Regulations,” Kotak Mahindra Bank said in a regulatory filing on Tuesday.
The floor price has been set at ₹1,147.75 apiece on the BSE and “the bank may at its discretion consider offering a discount of not more than 5 per cent on the floor price so calculated for the issue”, it further said.
The discounted price is ₹1,090.37 per share, which would help the lender raise ₹7,087.4 crore.
The move is also expected to marginally lower the bank’s promoter Uday Kotak’s stake from the current 29.91 per cent. Under the agreement reached with the Reserve Bank of India, the bank is required to reduce its promoter shareholding to 26 per cent of its paid-up voting equity share capital by August 17, 2020.
Goldman Sachs, Kotak Mahindra Capital, Morgan Stanley, and SBI Markets are the global coordinators and book running lead managers for the QIP.
The bank’s scrip closed 0.67 per cent lower at ₹1,152.45 apiece on the BSE on Tuesday.
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