Kotak Mahindra raises Rs 5.8K cr via 2nd largest QIP
Private sector lender Kotak Mahindra Bank on Friday raised over Rs 5,800 crore through a qualified institutional placement (QIP) at Rs 936 a share, sources said.
The issue, which involves sale of 6.2 crore shares will help reduce the promoter holding by 3.37 per cent, is the second biggest share sale in India after SBI's Rs 8,000 crore issue in January 2014, they said.
There was high interest among investors in the offering and book was closed at Rs 936 a share as against a floor price of Rs 913.24 it had decided before launching the issue, they said.
There was a "huge demand" from international domestic marquee investors for the issue, they added.
The Kotak Mahindra Bank counter saw keen interest by investors during trading on Friday and closed 1.76 per cent at Rs 953.30 a piece on the BSE, as against a 0.21 per cent correction in the benchmark.
The bank was yet to intimate the exchanges about the share sale.
It had on Thursday opened the issue, seeking to raise over Rs 5,662 crore through sale of 6.20 crore shares through the qualified institutional placement (QIP).
This share sale is part of stake reduction exercise by its promoter Uday Kotak, the vice-chairman of the bank, as per the RBI advice.
The RBI had issued a directive that Kotak Mahindra Bank executive vice-chairman Uday Kotak would need to reduce his stake in the bank to 30 per cent by June 2017 and 20 per cent by December 2018. Earlier in March, Kotak had sold 2.7 crore shares, reducing his stake in the bank to 31.8 per cent, from 33.3 per cent.
On March 30, the bank's board had approved a proposal to raise capital through an equity offer by issuing up to 6.2 crore shares of Rs 5 each.