Kotak Mahindra Bank, which plans to sell 6.2 crore shares worth ₹5,300 crore to pare the promoter’s stake to 30.8%, will explore options including a merger with another bank, stake dilution, divestment or a combination of the three to further reduce it to 20%.
In an interaction with The Hindu , joint managing director Dipak Gupta said that the three broad options were open. This would enable the lender to bring down promoter’s stake to 20%. To start with, the board of the bank had approved raising of capital which could take place in the next two months by way of equity shares, ADR/GDR or any other instruments.
Raising ₹5,300 crore will dilute promoter’s stake to 30.8%. But the regulatory mandate is to cut it to 30% by June.
“We are cognizant of that, we have to do it by June,” Mr. Gupta said. “We are evaluating all options on an on-going basis. So, it does not have to be necessarily through this route. We continue to work on all other options.”
This comes amid market speculation of a takeover of rival Axis Bank. The RBI has asked Kotak Mahindra Bank to bring down the promoter’s stake to 30% by June 30 and further to 20% by December 31, 2018 and to 15% by March 31, 2020.
On the plan to bring down the promoter’s stake to 20%, Mr. Gupta said: “The plan is very similar. First of all, it is still about 21 months away, which is a reasonable distance. The plan really has to happen in three broad ways which we are evaluating, which are, either some sort of a merger or a series of mergers, or promoter selling down or fresh equity issuance. As and when, on the basis of evaluation, we find comfort in one or more of these measures, we will follow that. No single one can probably make that happen,” he said indicating a combination of all three strategies would be pursued to reduce promoter Uday Kotak’s stake.
