Kotak Mahindra Bank sets floor price for QIP at Rs 913.24

Kolkata: Kotak Mahindra Bank has launched Rs 5,662 crore qualified institutional placement as the promoters of the private sector lenders look to dilute their holding to 30% immediately to follow banking regulations.

The bank board approved the plan to issue up to 6.2 crore shares at a meeting Thursday.

The board has set the floor price at Rs 913.24 per share with Rs 5 face value. At floor price, the bank would raise about Rs 5,662 crore and capital dilution would work out to be 3.37% on the current equity base.

Reserve Bank of India directed Uday Kotak, the promoter of the bank, along with his family members, to reduce their stake to 30% by June 30. According RBI norms, they have to pare it further to 15% by March 2020.

Just before the end of the fiscal, the promoters had sold a 1.5% stake, or 2.76 crore shares to Canadian pension fund manager Caisse de Depot et Placement du Quebec, helping them pare their stake to 32.08% as on March 31.

The bank's shares ended Thursday trade 1.12% higher at Rs 936.85 on BSE.

In a filing to BSE, the company said that its board of directors has passed a resolution on the issuance of equity shares in accordance with the provisions of ICDR regulations and the companies Act 2013.

The bank's securities issuance committee will meet on May 16 to consider the final issue price for the QIP.