Uday Kotak sells 1% in Kotak Mahindra Bank

Uday Kotak, the promoter of Kotak Mahindra Bank, has sold close to 1% stake in the bank for close to Rs 1,700 crore, a move aimed at cutting down his stake to comply with RBI regulations.

Following the transaction, the shareholding of promoter and promoter group now stands at 31.03%. Uday Kotak’s holding has reduced to 30.74% after the deal.

As per details available, Uday Kotak sold 1.8 crore shares at Rs 937.35 per share totalling Rs 1,687 crore. The biggest buyers from Uday Kotak included Caisse de depot et placement du Quebec (10.65 lakh shares), Capital World Growth and Income Fund (26.55 lakh shares), and American Funds Insurance Series Growth Income Fund (20.26 lakh shares).

Uday had sold close to 1.5% in the bank to Canada pension funds Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ). Earlier this month, the company had raised over Rs 5,600 crore through a qualified institutional placement at Rs 913.24 per share.

As per a circular issued by the Reserve Bank of India (RBI), promoters of Kotak Mahindra Bank have to reduce their stake to 30% by June 30, 2017, and to 15% by March 2020.