Kotak Mahindra Bank gains on preferential issue to Heliconia
The board has approved Heliconia Pte Ltd, an affiliate of GIC of Singapore, to subscribe to 20 million equity shares of the bank at price of Rs 648 per share.
Kotak Mahindra Bank has moved higher by around 2% to Rs 639 after the private sector lender said Singapore's Heliconia Pte Ltd will buy 2.6 % stake in the bank for Rs 1,296 crore.
“The board of directors has approved Heliconia Pte Ltd, an affiliate of GIC of Singapore, to subscribe to 20 million equity shares, or about 2.6 % shareholding in the bank at price of Rs 648 per share, aggregating to Rs 1,296 crore on preferential issue,” Kotak Bank said in a statement.
Kotak Mahindra Bank and Heliconia have entered into an Investment Agreement for Heliconia to subscribe to the aforesaid shares. Heliconia is an affiliate of Government of Singapore Investment Corporation Pte. Ltd, it added.
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 stock opened at Rs 630 and hit a high of Rs 642 on NSE. A combined 225,317 shares have changed hands on the counter so far on NSE and BSE.
“The board of directors has approved Heliconia Pte Ltd, an affiliate of GIC of Singapore, to subscribe to 20 million equity shares, or about 2.6 % shareholding in the bank at price of Rs 648 per share, aggregating to Rs 1,296 crore on preferential issue,” Kotak Bank said in a statement.
Kotak Mahindra Bank and Heliconia have entered into an Investment Agreement for Heliconia to subscribe to the aforesaid shares. Heliconia is an affiliate of Government of Singapore Investment Corporation Pte. Ltd, it added.
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 stock opened at Rs 630 and hit a high of Rs 642 on NSE. A combined 225,317 shares have changed hands on the counter so far on NSE and BSE.