Kotak Mahindra Bank share climbs 9% on nod to fundraising plan

Kotak Mahindra Bank share price rose almost 9% on Thursday after the board approved raising of capital by way of issue of equity shares.

The company announced in a regulatory filing that it plans to sell up to 65 million fresh equity shares of Rs 5 each, helping the lender to fetch Rs 7,500 crore, through a private placement, follow-on public offering (FPO) or qualified institutions placement (QIP) or a combination.

Following the announcement, Kotak Mahindra Bank shares opened with a gain of 2% and later touched an intraday high of Rs 1,252.8, rising 8.84% against last closing of Rs 1,151 on BSE.

"The board has accorded its approval for raising of capital by way of issue of equity shares, by the bank for up to 65 million equity shares of Rs 5 each, through a private placement, follow-on public offering (FPO), qualified institutional placement (QIP) or a combination thereof, as may be considered appropriate, subject to shareholders' approval and governmental, regulatory, statutory approvals and requirements, as applicable," the lender said in a disclosure with bourses yesterday.

Shares of Kotak Mahindra Bank closed 8.59% or 98 points higher at Rs 1,249.85 on BSE today.

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