Kotak Bank raises $100 mn through GDS

Kotak Mahindra Bank has raised $100 million through a global depository share (GDS) at $6.6 a GDS (about Rs 300 a share).

The issue price is at a 4.5 per cent premium to the closing of the bank's scrip on the Bombay Stock Exchange (BSE) on April 19.

The Bank had launched the issue in the afternoon on Wednesday, April 19, and the issue was closed on the morning of Saturday.

The private sector bank issued 1.50 crore GDSs, which resulted in the promoters' stake falling to 55 per cent from 58.55 per cent before the issue.

The promoters are required to bring down their stake to 49 per cent as per the conditions stipulated in the banking licence issued by the Reserver Bank of India (RBI).

The GDS holding will be 4.68 per cent of the expanded capital of the bank. The stakes of existing shareholders will get proportionately diluted.

Prior to the issue, foreign institutional investors held 20.83 per cent stake, Indian institutions 3.69 and retail investors 14.24 per cent.

Kotak Bank stock closed at Rs 304 on the Bombay Stock Exchange today, down from Rs 316.40 last Friday.

Each GDS represents one equity share of Rs 10 each. The GDS issue was oversubscribed by over four times at the issue price with good response from institutional investors from the US, Europe and Asia. The GDS will listed on the Luxembourg Stock Exchange.