The RBI had conveyed to the bank that its promoters, led by Managing Director and CEO Uday Kotak, would have 20 per cent of the paid-up voting equity share capital until March 2020, and it would be further brought down to 15 per cent from April 2020.
In December 2018, Kotak Mahindra Bank
had moved a writ petition in the Bombay High Court against the RBI after the central bank did not accept the reduction of promoter shareholding through an issue of preference shares. Following the agreement this year, the bank withdrew the writ petition.
Recently, the private lender raised more than Rs 7,440 crore via a qualified institutional placement by issuing 65 million shares to institutional investors at Rs 1,145 apiece. The QIP led the promoter shareholding in the bank fall 98 basis points to 28.94 per cent, from 29.92 per cent.
Institutional investors, including Invesco Oppenheimer Developing markets Fund, Canada Pension Plan Investment Board, and ICICI Prudential Mutual Fund, were allotted 8.02 per cent, 7.12 per cent, and 6.30 per cent, respectively, of the total offer size.