The board of Kotak Mahindra Bank had earlier approved a proposal to raise capital through a fresh issue of 6.5 crore.
Kotak Mahindra Bank share price surged over 4 per cent to hit day’s high of Rs 1202.35 apiece on BSE in Wednesday’s volatile trade as the private lender launched a qualified institutional placement (QIP) to raise up to Rs 7,460 crore. Kotak Mahindra Bank shares opened at Rs 1,164.95 and touched an intraday low of Rs 1,163.25 in today’s trade. The stock price has gained over 20 per cent from its March low of Rs 1,000.35, while Kotak Mahindra Bank is still 44.71 per cent down from its 52-week high touched in the second month of the calendar year 2020. Yesterday, Kotak Mahindra Bank (KMB) disclosed the floor price for its QIP at Rs 1,147.75 per share for raising capital by a fresh issue of 6.5 crore shares, the lender informed stock exchanges. “The Bank may at its discretion consider offering a discount of not more than 5% on the floor price so calculated for the issue,” Kotak Mahindra Bank said in an exchange filing.
Around 11.30 AM, Kotak Mahindra Bank shares were trading 2.07 per cent higher at Rs 1,176.30 apiece on BSE. The board of Kotak Mahindra Bank had earlier approved a proposal to raise capital through a fresh issue of 6.5 crore shares. The bank also informed that meeting of the issuance committee of the board is scheduled to be held on May 29, 2020, to consider and approve the issue price.
Last week, Kotak Mahindra Bank replaced HDFC Bank to become the most expensive bank stock, according to Bloomberg data. Globally, among the 40 biggest lenders, Kotak Mahindra Bank, HDFC Bank and ICICI Bank featured among the top six most expensive bank stocks.
Due to the coronavirus provisions, Kotak Mahindra Bank posted a 4 per cent fall in consolidated net profit at Rs 1.951.82 crore for the quarter ended on March 31. The bank had reported a profit of Rs 2,038.27 crore in the corresponding quarter of the preceding fiscal. In accordance with the RBI circular dated April 17, 2020, the board of directors of Kotak Mahindra Bank did not recommend any dividend for 2019-20.