Uday Kotak sells $261 million stake in Kotak Mahindra Bank on RBI order | business-news | Hindustan Times
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Uday Kotak sells $261 million stake in Kotak Mahindra Bank on RBI order

The RBI asked Kotak to lower his holding in the bank to 30% by end-June, 20% by end-December next year, and to 15% by March 31, 2020.

business Updated: May 22, 2017 20:12 IST
(HT photo)

Uday Kotak, the billionaire head of India’s Kotak Mahindra Bank Ltd, sold a less than 1% stake in the lender in stock market transactions on Monday, complying with a Reserve Bank of India (RBI) order to cut his holding.

The RBI asked Kotak to lower his holding in the bank to 30% by end-June, 20% by end-December next year, and to 15% by March 31, 2020.

On Monday, Kotak sold 18 million shares in the lender for 16.87 billion rupees ($261 million), lowering his ownership of the bank to 29.79%, according to a regulatory filing.

In March, Kotak sold an about 1.5% stake in the bank to Canada’s two largest pension funds - Canada Pension Plan Investment Board (CPPIB) and Caisse de depot et placement du Quebec (CDPQ).

Earlier this month, the bank raised about $900 million by selling new shares to funds, diluting Kotak’s holding further.

Ahead of the deal on Monday, Kotak owned 30.74% of the lender.

Shares in Kotak Mahindra Bank, which has the third-highest market capitalisation among India’s banks, closed 0.4% higher at 941.25 rupees on Monday.