Uday Kotak Sells 1.5% Stake In Kotak Mahindra Bank

New Delhi: Kotak Mahindra Bank's promoter Uday Kotak today sold 1.5 per cent in the private sector lender to two Canadian pension funds for an estimated Rs 2,255 crore through an open market transaction.

Canada Pension Plan Investment Board and Caisse de Depot et Placement du Quebec purchased a total of 2.76 crore shares, amounting to 1.5 per cent stake, of Kotak Mahindra Bank, according to block deal data available with the BSE.

The shares were picked up at an average price of Rs 817, valuing the transaction at Rs 2,254.92 crore, data showed.

Uday Kotak, along with family members, held 33.61 per cent stake in the bank as of December 2016, out of which 33.30 per cent is held by Kotak in his personal capacity.

The stake sale by Uday Kotak, Vice Chairman and Managing Director of the private sector lender, is part of an effort to comply with RBI's directive.

The lender has been asked by Reserve Bank of India (RBI) to bring down its promoter shareholding to 30 per cent by June 30, 2017.

Further, the bank will have to reduce promoter holding to 20 per cent by December 31, 2018 and 15 per cent by March 2020 in line with the guidelines for new bank license.

Shares of Kotak Mahindra Bank today closed at Rs 824.50 on the BSE, down 0.88 per cent from the previous close.

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