Uday Kotak, promoter of Kotak Mahindra Bank, sold 56 million shares in the secondary market on Tuesday, which was subscribed to by more than 100 investors, for ₹6,900 crore.
Kotak Mahindra Bank had hammered a deal with the RBI in January to dilute promoter stake to 26% within six months from the date of the final approval from the banking regulator. Prior to today’s transaction, Mr. Kotak had 29.63% share in the bank, while the promoter group had 29.89% stake. According to the bulk deal data of BSE, 56 million shares, or 2.93%, was sold by Mr. Kotak to 130 investors at ₹1,240 per share. The total value of the sale is around ₹6,900 crore.
Some of the investors were The Regiments of the University of California (₹680.75 crore), Oppenheimer Developing Markets Fund (₹662.92 crore), JP Morgan Securities (₹506.91 crore), SBI Mutual Fund (₹408.46 crore), Aditya Birla Sunlife Mutual Fund (₹385.77 crore), Canada Pension Plan Investment Board (₹378.33 crore), among others.
Mr. Kotak’s voting rights have been capped at 15% wth effect from April 1, 2020, despite his actual shareholding being higher, as per the agreement with RBI.
Shares of Kotak Mahindra Bank ended 7.5% higher at BSE to close the day at ₹1,343.20 a piece.
Separately, at a Confederation of Indian Industry event, Mr. Kotak said the Indian banking sector would need ₹3 lakh crore to ₹4 lakh crore capital to absorb losses.
“The total banking sector loans to the real world is about ₹100 lakh crore. Total banking sector capital today is ₹11-12 lakh crore. Still ₹3 lakh crore of losses the banking sector has to pay,” Mr. Kotak said.
Published - June 02, 2020 11:04 pm IST
