MUMBAI: Kotak Mahindra Bank on Wednesday said it will raise capital by issuing up to 65 million fresh equity shares, which at the current market price may fetch the private sector lender ₹7,527 crore.
On Wednesday, Kotak Mahindra Bank’s stock was trading 2.44% higher at ₹1158 apiece on BSE. The bank said its board, in a meeting, has approved the capital raising plan through a follow-on public offer (FPO) or a qualified institutional placement (QIP) or a combination of both.
Two people familiar with the bank’s plans said, apart from reducing the promoter's stake partially in line with the agreement with Reserve Bank of India (RBI), the issue will help the bank build a war-chest to combat potential liquidity risks during the covid-19 crisis