The private lender had said last month that the proposed issuance would augment its capital base, strengthen its balance sheet, and help in dealing with contingencies or financing both organic and inorganic business opportunities, which may arise after the Covid outbreak.
In February, the Reserve Bank of India (RBI) had given final approval to the bank’s proposal on promoters’ stake reduction and capping voting rights in the bank. The RBI had conveyed to the bank that its promoters led by managing director and CEO Uday Kotak would have to bring down their shareholding to 26 per cent of the paid-up voting equity share capital by August 2020. Also, promoters would have 20 per cent of the paid-up voting equity share capital until March 31, 2020, and it would be brought down to 15 per cent from April 1, 2020.
Shares of Kotak Mahindra
Bank closed at Rs 1,152.5, down 0.7 per cent on Tuesday.