Private sector lender Kotak Mahindra Bank on Wednesday said its board has approved a proposal to issue 65 million equity shares of Rs 5 each as a part of its capital raising plans. At the current market price, this works out to around 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 Rs 5 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 shares on the BSE were trading at Rs 1,147, up 1.4 per cent from previous days close on the BSE.
On a standalone basis, the lender had a capital adequacy ratio of 18.2 per cent with tier 1 capital at 17.7 per cent at the end of December 2019. The regulatory requirement is at 11.07 per cent.
(Disclosure: Entities controlled by the Kotak family have a significant holding in Business Standard Pvt Ltd.)
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