Kotak Mahindra Bank gains on FIPB nod to increase foreign investment limit

At 0921 hours, the stock was up 2% at Rs 1,458 on the NSE.

Shares of Kotak Mahindra Bank were trading higher by 2% at Rs 1,458 on the NSE early this morning after the Foreign Investment Promotion Board (FIPB) on Friday cleared the bank’s proposal to raise foreign investment limit in the lender to 55%. The CNX Nifty was down 0.78% at 8,419 points.

Kotak Mahindra Bank had approached FIPB after the Reserve Bank of India barred overseas investments in it as foreign shareholding hit the permissible threshold following the merger with ING Vysya Bank. Investments from foreign institutional investors (FIIs), foreign portfolio investors (FPIs) and foreign banks had reached 48.55% in the merged entity. CLICK HERE TO READ FULL REPORT.

Meanwhile, Kotak Mahindra Bank has fixed July 09, 2015 as record date for the purpose of allotment of bonus shares. The stock will turn ex-bonus on July 8.

The board of directors of the bank at their meeting held on May 5, 2015 had approved issue of bonus shares in the ratio of 1:1 i.e. one bonus shares for every one share held in the bank.

The stock opened at Rs 1,440 and touched a high of Rs 1,460 on the NSE. A combined about 210,000 shares changed hands on the counter on the NSE and BSE till 0921 hours.