Private sector Kotak Mahindra Bank on Friday said Singapore's Heliconia Pte Ltd will buy 2.6 percent stake in the bank for Rs 1,296 crore.
New Delhi: Private sector Kotak Mahindra Bank on Friday said Singapore's Heliconia Pte Ltd will buy 2.6 percent 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 two crore equity shares, or about 2.6 percent shareholding in the bank for Rs 1,296 crore, Kotak Bank said in a statement.
The price of Rs 648 per share offered by Heliconia Pte Ltd values Kotak Mahindra Bank at about Rs 49,000 crore.
Shares of Kotak Bank were trading at Rs 635 apiece, up 1 percent on the BSE during the afternoon.
The preferential equity issue is subject to shareholder and other necessary regulatory approvals, the statement added.
"We welcome a reputed and large global financial institution of the stature of GIC as our shareholder. Their investment in the Bank underscores the strong fundamentals of our institution," Kotak Mahindra Bank President and Group CFO Jaimin Bhatt said.
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 consolidated networth of Kotak Group is Rs 14,568 crore.