Kotak Mahindra Bank said it will be selling up to 65 million fresh equity shares valued at around ₹7527 crore at the current market price. The bank said in a filing with the stock exchanges its board has approved the plan to raise capital through a follow-on public offer or a qualified institutional placement or both. Apart from reducing the promoter’s stake partially in line with the agreement with the Reserve Bank of India, the issue will help the bank to have funds to contain liquidity risks following the COVID-19 pandemic. The issuance will lead to a sale of 3.28% stake by the bank and of the bank’s promoter, Uday Kotak, does not subscribe to the fresh equity issuance, his stake will come down by about 1%, which will take him closer to RBI’s promoter holding limit.
