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Veteran banker and Managing Director and CEO of Kotak Mahindra Bank, Uday Kotak is set to offload 5.6 crore shares in the private sector lender through a block deal on June 2, as part of the agreement with the Reserve Bank of India to lower his stake.
The transaction, which is expected to raise between ₹6,800 crore to ₹6,900 crore, will pare Kotak’s stake in the bank by about 2.83 per cent. Kotak’s holding in the bank will then be at about 26.1 per cent.
The move comes just days after the bank raised ₹7,442.50 crore from issuing 6.5 crore shares through a qualified institutional placement (QIP). “The QIP brought down the promoter’s stake to about 28.9 per cent from 29.8 per cent. But the main aim of the QIP was to raise funds for business sustainability and inorganic growth,” market sources pointed out, adding that this deal will help Kotak meet the RBI’s conditions.
“There will be time till August or September to reduce whatever differential is left,”the sources noted.
An email sent by BusinessLine to Kotak Mahindra Bank did not elicit a response.
Kotak Mahindra Bank had on January 30 said it has reached an agreement with the RBI on dilution of promoter stake. Under the agreement, Kotak had to lower promoter stake to 26 per cent within a six month period.
The bank had also withdrawn the Writ Petition it had filed against the RBI on the issue in the Bombay High Court.
On Monday, the bank’s scrip closed 2.09 per cent higher at ₹1,249.25 apiece on BSE.
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