Kotak dives ~3% after RBI rejects proposal to dilute promoter stake
The country’s top bank has rejected the manner in which private lender Kotak Mahindra Bank has sought to dilute its promoter holding.
Promoter Uday Kotak sought to lower his stake to the stipulated 20% by selling nonconvertible perpetual noncumulative preference shares (PNCPS) to some investors earlier this month.
The RBI had earlier asked Kotak to lower his holding in the bank to 30% by end-June 2017, 20% by end-December 2018, and up to 15% by March 31, 2020.
In a statement to the exchanges on Tuesday, Kotak Mahindra claimed that “RBI has today communicated to us that our PNCPS issuance does not meet their promoter holding dilution requirement.”
However, the bank aims to fight back and stated that “We continue to believe that we have met the requirement and will engage with the RBI in this behalf.”
The Mumbai-headquartered bank has a presence across all financial verticals including banking, securities, investment banking, asset management, consumer finance and life insurance.
Its stock is currently trading at Rs1,255.50 down by Rs36.1 or 2.79% from its previous closing of Rs1,291.60 on the BSE.
The scrip opened at Rs1,271 and has touched a high and low of Rs1,271 and Rs1,251 respectively. So far 15,42,370 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,46,220.61cr.
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