Private lender Kotak Mahindra Bank has launched a qualified institutional placement (QIP) offering of 6.5 crore equity shares to raise funds up to Rs 7,500 crore.
The bank has set a floor price, based on the SEBI formula, at Rs 1147.75 per share. The Kotak Mahindra Bank has said that it may “at its discretion consider offering a discount of not more than 5 per cent on the floor price so calculated for the issue.”
QIP is a capital-raising tool, mainly used in India and Southern Asia. It is used by listed companies to sell shares or other securities to qualified institutional buyers such as mutual funds.
As per a CNBCTV18 report, post the QIP, bank’s tier-I capital ratio will improve by 221 bps to 21.4 per cent, which will make the Kotak Mahindra Bank the strongest capitalised bank in the country.
Bank’s net worth will jump by 14.5 per cent to Rs 56,102.4 crore.
On Tuesday, bank’s shares ended at Rs 1,152.45, down 0.67% on the BSE.
Reports suggest that investment banks Goldman Sachs, Morgan Stanley, Kotak Mahindra Capital and SBI Capital Markets are advising Kotak Mahindra Bank on the deal.