Kotak Mahindra Bank share was the top gainer on Sensex and Nifty rising almost 8% today on report company's managing director Uday Kotak would sell 2.83 per cent stake worth over Rs 6,800 crore in the lender through the block deal. On Sensex, the stock gained 7.88% to Rs 1,347 compared to the previous close of Rs 1,249.
The stake sale of 56 million equity shares or 2.83% of the equity of bank was on the back of reducing Kotak's stake in the bank as per the RBI-mandated 26% from the current 28.93%.
The price band for the share sale has been fixed at Rs 1,215 to Rs 1,240 apiece, fetching Rs 6,804 crore at the lower end of the price band and Rs 6,944 crore at the upper-end, as per the term sheet.
Following the announcement, Kotak Bank stock price opened with a gain of 5.66% today and later touched an intraday high of Rs 1347.75, rising 7.88% on BSE. Kotak Bank share had closed at Rs 1,249.25 on BSE yesterday.
Kotak Bank share price trades higher than its 5, 20 and 50-day but lower than 100 and 200-day moving averages. Market capitalisation of the lender currently stands at Rs 2,53,349 crore.
Kotak Bank stock has gained 8.94% returns in the last 2 days and risen 14.87% in one week.
Morgan Stanley and Goldman Sachs (India) Securities are the designated agents for carrying out the deal.
The lender has reduced 1% stake to 29% through the recently launched QIP issue. The private lender raised 7,442.5 crore through a qualified institutional placement by issuing 6.5 crore shares at 1,145 each.