Kotak Mahindra Bank share price gained over 6 per cent during intraday trade on Tuesday after its founder and chief executive officer Uday Kotak agreed to sell 2.83 per cent stake worth over Rs 6,800 crore in the private lender.
Kotak currently holds 28.93 per cent stake in the private lender and the sale will help Uday to bring down his stake in the country’s fourth largest private sector lender to the RBI-mandated 26 per cent.
On the BSE, the stock was at Rs 1,323.10,.up by 5.91 per cent. Earlier in the day, it had opened on a strong note and further jumped 7.88 per cent to Rs 1,347.75.
The stock rose 6.03 per cent to Rs 1323.65 on the NSE. Earlier in the day it was up by 7.97 per cent to Rs 1,348.
In January, the bank said the RBI had agreed to its proposal to reduce promoters’ stake to 26 per cent from then 29.9 per cent over the next six months, which is June. It also said promoter’s voting rights would be capped at 20 per cent of the paid-up voting share capital until March 31, 2020 and would be further capped at 15 per cent effective April 1, 2020.
The bank had also said that as part of the settlement with the RBI, the promoters would not purchase any more paid-up voting equity shares till their shareholding reached 15 per cent. Following this agreement, RBI, the bank withdrew its writ petition from the Bombay High Court. On February 18, the RBI granted final approval to the settlement between both parties.