The shareholding of Uday Kotak in Kotak Mahindra Bank has fallen to 25.82 per cent in the April-June quarter of the ongoing fiscal from 29.63 per cent in Q4FY20. Total number of shares held by the promoter and managing director of Kotak Mahindra Bank currently stands at 51,09,27,100, according to the latest shareholding pattern data available on the exchanges.
Promoter and Promoter Group together hold 26.07 per cent shareholding in the bank. RBI's norms stipulate 26 per cent promoter holding in the bank.
Kotak recently sold 56 million shares, or 2.8 per cent stake, for more than 6,900 crore to reduce his stake to 26.1 per cent in Kotak Mahindra Bank in accordance with the Reserve Bank of India's (RBI) norms. The billionaire banker had a standoff with the apex bank over his surplus personal shareholding in Kotak Mahindra Bank. Kotak had dragged the RBI to the Bombay High Court in December 2018 over the issue.
On January 30 2020, the bank had said that the RBI had agreed to its proposal to reduce promoters' stake to 26 per cent from over 29 percent over the next six months, which is June. It had also said promoters' voting rights would be capped at 20 per cent of the paid-up voting share capital until March 31, 2020 and would be further capped at 15 per cent effective April 1, 2020.
The bank said that as part of its settlement with the RBI, the promoters would not purchase any more paid-up voting equity shares until their shareholding reached 15 per cent. Following this agreement, the bank withdrew its writ petition from the Bombay High Court. On February 18, the RBI granted final approval to the settlement between both parties.
Shares of Kotak Mahindra Bank ended the intraday trade at Rs 1,317, up 27 points, or 2.09 per cent on NSE.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today