Kotak Mahindra Bank is likely to hit the market with a fresh issue of over $300 million in the third quarter of the current financial year. The move will help the bank bring down the promoter shareholding. The group’s capital market exposure has exceeded the Reserve Bank of India’s mandated 40% of net worth because of the buoyant capital market.
Currently, the promoter shareholding in the bank is at 55.5%. The new issue will see a dilution of around 5% capital. The promoter shareholding, post-issue, would go down to around 52%.The bank could raise the money through a QIP or GDR route. Though the capital market exposure of the bank is only at around 25%, the group exposure is above 40%.
Read more in The Economic Times article.
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