Private sector lender Kotak Mahindra
Bank on Wednesday said its board had approved a proposal to issue 65 million equity shares of Rs 5 each as part of its capital raising plans. At the current market price, this works out to about Rs 7,500 crore.
“The board has accorded its approval for raising of capital by way of issue of equity shares, by the bank for up to 65 million equity shares of Rs5 each, through a private placement, follow-on public offering (FPO), qualified institutional placement (QIP) or a combination thereof, as may be considered appropriate, subject to shareholders’ approval and governmental, regulatory, statutory approvals and requirements, as applicable,” said the bank in an exchange filing. The bank’s share closed at Rs1,151, up 1.8 per cent from previous days close on the BSE. According to a report by Morgan Stanley, if the bank was to raise capital up to the approved limit, this would imply an equity dilution of 3.4 per cent.
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