InvestorQ : What has been the response to the placement of shares to QIPs by Kotak Bank?
Neelam Naik made post

What has been the response to the placement of shares to QIPs by Kotak Bank?

Answer
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Priyanka N answered.
4 months ago


Kotak Mahindra Bank board announced that it had raised Rs.7443 crore via issuance of 6.5 crore shares to qualified institutional participants (QIPs) via private placement of shares. Kotak Bank offered a total of 6.5 crore shares to investors at a price of Rs.1145 per share. This issue price represents a discount of 6.43% to the market price of Kotak Bank. Global investors INVESCO Oppenheimer was allotted 8.02% of the total issue while Canada Pension Fund got 7.12%. Among the domestic investors, ICICI Pru MF was allotted 6.3% stake in the issue. Kotak QIP is the first QIP to hit the market post the COVID-19 lockdown and the last major QIP worth Rs.4098 crore was from Avenue Supermarts. Kotak Bank will use the proceeds of the QIP primarily to bolster its balance sheet and strengthen its capital buffers as a shield post COVID-19. Kotak Bank already has a capital adequacy ratio (CAR) of 18% as opposed to the statutory minimum of 9%. This QIP will also allow Uday Kotak to reduce his stake down to the stipulated 26% as directed by the RBI.