Kotak Bank rides high on bonus booster

DALAL STREET SPIKES

Kotak Mahindra Bank gained on announcement of a bonus issue in the ratio of three shares for every two shares held. The stock as a result raced to its day's high of Rs 410, before closing at Rs 397.70, up 1.79 per cent from its previous close.

Markets analyst said, the counter witnessed further buying interest on announcement of a liberal bonus issue. The stock has had a dream run since the company had announced that its board will consider a bonus issue few days back. From Rs 346.45 on May 30, the stock is currently trading at Rs 397.70, appreciating 14.73 per cent in a short period.

Following the 3:2 bonus issue, its equity capital would go up to over Rs 300 crore. This satisfies the license condition of the Reserve Bank of India, the bank said. The bank had in August 2004, declared a 1:1 bonus.

The counter was actively traded with volumes of more than 6.2 lakh shares on BSE.