Kotak Mahindra Plans To Mop Up $300 Mn

Kotak Mahindra Bank is expected to come out with a fresh issue of over $300 million in the third quarter of the current financial year. The group''s capital market exposure has exceeded the Reserve Bank of India''s mandated 40% of net worth because of the buoyant capital market. The bank proposed to issue up to 17 million equity shares.

The promoter shareholding, at present, in the bank is at 55.5%. The new issue will see a dilution of around 5% capital. The promoter shareholding, post-issue, would go down to around 52%. There would also be a fall in stake on the back of ESOPs. The bank could raise the money through a QIP or GDR route. Though the capital market exposure of the bank is only at around 25%, the group exposure is above 40%. The exposure of Kotak Securities and Kotak Mahindra Capital Company has increased the group exposure limits to above 40% of the net worth. The total net worth of the group is around Rs 3,500 crore. However, these exposures vary depending on whether the investment banking outfit underwrites any capital market issues or any spurt in volumes in the stock market.