Private-sector lender Kotak Mahindra Bank today said Singapore's Heliconia Pte Ltd will buy 2.6 per cent stake in the bank for Rs 1,296 crore.
The board of directors has approved Heliconia, an affiliate of GIC of Singapore, to subscribe to two crore equity shares, or about 2.6 per cent shareholding in the bank for Rs 1,296 crore, Kotak Mahindra said in a statement.
The price of Rs 648 per share offered by Heliconia values Kotak Mahindra Bank at about Rs 49,000 crore.
Shares of Kotak Mahindra were trading at Rs 635 apiece, up 1 per cent on the BSE during the afternoon.
The preferential equity issue is subject to shareholder and other necessary regulatory approvals, the statement added. "We welcome a reputed and large global financial institution of the stature of GIC as our shareholder. Their investment in the bank underscores the strong fundamentals of our institution," Kotak Mahindra Bank president and group CFO Jaimin Bhatt said.
The transaction augments the tier I capital of the bank for pursuit of growth opportunities and is a step towards dilution of promoter stake in the bank, the statement said.
The consolidated net worth of the Kotak Group is Rs 14,568 crore.
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