Kotak Mahindra Bank raises Rs 5,800 crore via QIP

Private lender Kotak Mahindra Bank has raised over Rs 5,803 crore through a qualified institutional placement ( QIP) issue.

The bank had launched the QIP issue on May 11 and announced its closure yesterday.

The securities issuance committee of the board of the bank in its meeting yesterday approved the issue price of Rs 936 apiece for 6.2 crore equity shares, according to a regulatory filing.

The Securities Issuance Committee of the board of directors of the bank at a meeting on May 16 approved to allot 62,000,000 equity shares to eligible qualified institutional buyers, Kotak Mahindra Bank said in a regulatory filing.

The QIP was part of an exercise to shed promoter Uday Kotak's stake, who is also the vice-chairman of the bank, as per advice of the Reserve Bank.

As per the RBI directive, Uday Kotak needs to cut his stake in the bank to 30 per cent by June 2017 and further to 20 per cent by December 2018.

In an earlier communication, the bank said fund raising would be required to forge on consolidation opportunities in the market as well as to seek organic growth.