Uday Kotak to sell 2.8 pct Kotak Mahindra Bank stake - This is the whopping amount he will get

In a major development, it has been reported that billionaire banker Uday Kotak will sell 2.8 per cent stake in Kotak Mahindra Bank for at least Rs 6,800 crore. As per a news alert by PTI quoting a document, "Promoter Uday Kotak to sell 2.8 per cent stake in Kotak Mahindra Bank for at least Rs 6,800 crore. The stake dilution will be done through a block deal and will be completed shortly at a price band of Rs 1,215 to Rs 1,240 a share," the PTI report added. As per the term sheet, the deal would be worth Rs 6,800 crore at the lower end of the price band.

Currently, Kotak and his family holds 28.8 per cent stake in the bank as against the RBI mandate of 26 per cent. Kotak, the richest banker in Asia, is the Managing Director of Kotak Mahindra Bank, which is the fourth largest private sector lender in the country. 

The big development of stake sale came soon after the private sector lender raised Rs 7,442.5 crore through a qualified institutional placement (QIP) of shares. The bank on Saturday issued 6.5 crore shares at a price of Rs 1,145 per share to the buyers to raise the money which will buffer its capital reserves, it said in a regulatory filing.

Entities who bought the shares include Invesco Oppenheimer Developing Markets Fund, which bought 52.16 lakh shares or over 8 per cent of the issue size, Canada Pension Plan Investment Board (46.25 lakh shares or 7.12 per cent of the issue) and 40.96 lakh shares or 6.30 per cent of the issue by ICICI Prudential Mutual Fund through 18 schemes, the bank said.

The issue price decided by a board committee late on Friday evening was 6.43 per cent below Friday's close of Rs 1,223.70 and a notch below the formula arrived floor price of Rs 1,147.75.