Kotak Mahindra Bank shares jumped more than 7 per cent on Tuesday on the news that banker and founder Uday Kotak will divest 2.83 per cent stake worth over Rs 6,800 crore in the country's fourth largest private sector lender. The stake sale would help bring down Mr Kotak's stake to 26 per cent, as mandated by RBI.The Kotak Mahindra Bank shares ended the session at Rs 1,343, higher by Rs 94 or 7.4 per cent, on the BSE. The shares touched an intra-day high of Rs 1,353 and a low of Rs 1,299 thus far.
The stake dilution would reportedly be carried out through private placement by way of a block deal on June 2. The price band for the share sale has been fixed at Rs 1,215 to Rs 1,240 apiece. The sale would fetch Rs 6,804 crore at the lower end of the price band and Rs 6,944 crore at the upper-end.
Under the agreement, Mr Kotak had reached with the RBI this January, Mr Kotak has time till August 17, 2020 to pare the promoters/promoter group stake which currently is at 28.93 per cent.
The Sensex ended 522 points or 1.57 per cent higher at 33,825.53 and Nifty 50 index surged 153 points or 1.56 per cent to close at 9,979.10.