Kotak Mahindra Bank plans to raise Rs 5,400 crore equity capital; might pursue consolidation
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The board of directors at Mumbai-headquartered Kotak Mahindra Bank has approved the sale of 6.2 crore equity shares to raise equity capital worth Rs 5,369 crore at current prices.
In a notice to thestock exchanges , the bank said that the board approval is subject to approvals from shareholders and other regulations.
Also read: ED arrests Kotak Mahindra Bank manager
This fresh capital will be used to pursue acquisition opportunities inIndian banking and finance and buying stressed loans from other banks, while also helping fuel lending and digital opportunities.
The money would also help raise funds for bank's subsidiaries.
Also read: Donald Trump once sued Kotak Mahindra for launching a credit card called Trump and even won the battle
Reserve Bank of India's communication asking the bank's promoter and managing director to reduce stake could also be a reason behind this decision to sell shares.
It was last month that the central bank had asked Kotak Mahindra Bank to reduce promoter holding to 30% by June 2017 and to 20% by December 2018.
As per BSE data, Uday Kotak, MD of Kotak Mahindra Bank, along with family members control 33.61% of bank’s stake as of December 2016. Out of this, 33.30% is held by Kotak individually.
(Image source: TimesJobs)
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In a notice to the
Also read: ED arrests Kotak Mahindra Bank manager
This fresh capital will be used to pursue acquisition opportunities in
The money would also help raise funds for bank's subsidiaries.
Advertisement
Reserve Bank of India's communication asking the bank's promoter and managing director to reduce stake could also be a reason behind this decision to sell shares.
It was last month that the central bank had asked Kotak Mahindra Bank to reduce promoter holding to 30% by June 2017 and to 20% by December 2018.
As per BSE data, Uday Kotak, MD of Kotak Mahindra Bank, along with family members control 33.61% of bank’s stake as of December 2016. Out of this, 33.30% is held by Kotak individually.
(Image source: TimesJobs)
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