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Uday Kotak stake in his bank has investors on edge

Kotak Mahindra Bank’s promoters face an uphill task to reduce their stake from the present 30.02% to just below 20% by December end to comply with RBI guidelines. The bank had raised Rs 500 crore through issue of crore perpetual non-cumulative preference (NCP) shares to bring down its promoter stake. However, RBI refused to accept the contention which has left the lender with little time to explore other avenues. The lender can either have a fresh issue of shares or it can acquire another lender or finance company, and try and bring the promoter stake down through a share swap. Another option is for Uday Kotak to sell his excess 10% stake in the secondary market through a block deal which at current prices would be roughly worth Rs 22,400 crore. 

Read More at Livemint News date : 28 Nov 2018, Wednesday

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