Kotak Mahindra Bank shares rally nearly 8 pc; m-cap jumps Rs 18,076 cr

New Delhi, Jun 2 () Shares of Kotak Mahindra Bank on Tuesday closed nearly 8 per cent higher as promoter Uday Kotak will offload 2.83 per cent stake in the lender to comply with an RBI mandate.

The RBI has mandated that Kotak reduce his personal holding in Kotak Mahindra Bank to 26 per cent.

On the BSE, the stock closed with a gain of 7.52 per cent at Rs 1,343.20. During the day, it jumped 8.26 per cent to Rs 1,352.55.

The stock rose 7.69 per cent to settle at Rs 1,344.45 on the NSE.

Led by the rally in the stock, the company's market valuation jumped Rs 18,076.2 crore to Rs 2,57,062.20 on the BSE.

In traded volume terms, 566.76 lakh shares were traded on the BSE and 1.73 crore on the NSE.

Billionaire banker Uday Kotak, who has had a long run-in with the Reserve Bank over his excess personal holding in Kotak Mahindra Bank, will be selling 2.83 per cent stake worth over Rs 6,800 crore in the lender on Tuesday.

The stake sale would help bring down his stake in the country's fourth largest private sector lender to the RBI-mandated 26 per cent.

A source aware of the development told that the stake dilution would be carried out through private placement by way of a block deal on June 2.

"Uday Suresh Kotak will sell 56 million equity shares or 2.83 per cent of equity of bank through the block deal. After the dilution, his personal holding will come down to 26.1 per cent from 28.93 percent now," as per the term sheet. SUM RUJ RUJ