Kotak Mahindra Bank surges post QIP

Kotak Mahindra Bank informed that it has secured Rs 7,442.5 crore via the issuance of 65 million shares in a qualified institutional placement (QIP). The bank further mentioned that the issue was opened on May 24 and closed on May 29, 2020.

In a regulatory filing made on Saturday, the bank declared that at its meeting held on May 30, its board of directors authorised the issuance and allotment of 6,50,00,000 equity shares of a face value of Rs 5 each to eligible qualified institutional buyers at an issue price of Rs 1,145 per equity share (including a premium of Rs 1,140 per equity share), aggregating to Rs 7,442.5 crore, pursuant to the issue.

Kotak Mahindra Bank, commenting on this development, added, "Entities who bought the shares include Invesco Oppenheimer Developing Markets Fund, which bought 52.16 lakh shares or over 8 per cent of the issue size, Canada Pension Plan Investment Board (46.25 lakh shares or 7.12 per cent of the issue) and 40.96 lakh shares or 6.30 per cent of the issue by ICICI Prudential Mutual Fund through 18 schemes."

Kotak Mahindra Bank's stock was trading at Rs 1,262.60, up by 3.18 per cent against its previous close of Rs 1,223.70, at 12.11 pm today on BSE.